chore(release): v0.18.0

Co-authored-by: Sehoon Shon <sshon@google.com>

docs/get-started/configuration.md

@@ -240,7 +240,7 @@ their corresponding top-level category object in your `settings.json` file.
 - **`ui.useAlternateBuffer`** (boolean):
   - **Description:** Use an alternate screen buffer for the UI, preserving shell
     history.
-  - **Default:** `true`
+  - **Default:** `false`
   - **Requires restart:** Yes
 
 - **`ui.incrementalRendering`** (boolean):

integration-tests/test-helper.ts

@@ -321,6 +321,9 @@ export class TestRig {
           selectedType: 'gemini-api-key',
         },
       },
+      ui: {
+        useAlternateBuffer: true,
+      },
       model: DEFAULT_GEMINI_MODEL,
       sandbox:
         env['GEMINI_SANDBOX'] !== 'false' ? env['GEMINI_SANDBOX'] : false,

package-lock.json

@@ -1,12 +1,12 @@
 {
   "name": "@google/gemini-cli",
-  "version": "0.18.0-nightly.20251120.2231497b1",
+  "version": "0.18.0",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "@google/gemini-cli",
-      "version": "0.18.0-nightly.20251120.2231497b1",
+      "version": "0.18.0",
       "workspaces": [
         "packages/*"
       ],
@@ -2403,7 +2403,6 @@
       "integrity": "sha512-t54CUOsFMappY1Jbzb7fetWeO0n6K0k/4+/ZpkS+3Joz8I4VcvY9OiEBFRYISqaI2fq5sCiPtAjRDOzVYG8m+Q==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@octokit/auth-token": "^6.0.0",
         "@octokit/graphql": "^9.0.2",
@@ -2584,7 +2583,6 @@
       "resolved": "https://registry.npmjs.org/@opentelemetry/api/-/api-1.9.0.tgz",
       "integrity": "sha512-3giAOQvZiH5F9bMlMiv8+GSPMeqg0dbaeo58/0SlA9sxSqZhnUtxzX9/2FzyhS9sWQf5S0GJE0AKBrFqjpeYcg==",
       "license": "Apache-2.0",
-      "peer": true,
       "engines": {
         "node": ">=8.0.0"
       }
@@ -2618,7 +2616,6 @@
       "resolved": "https://registry.npmjs.org/@opentelemetry/core/-/core-2.0.1.tgz",
       "integrity": "sha512-MaZk9SJIDgo1peKevlbhP6+IwIiNPNmswNL4AF0WaQJLbHXjr9SrZMgS12+iqr9ToV4ZVosCcc0f8Rg67LXjxw==",
       "license": "Apache-2.0",
-      "peer": true,
       "dependencies": {
         "@opentelemetry/semantic-conventions": "^1.29.0"
       },
@@ -2987,7 +2984,6 @@
       "resolved": "https://registry.npmjs.org/@opentelemetry/resources/-/resources-2.0.1.tgz",
       "integrity": "sha512-dZOB3R6zvBwDKnHDTB4X1xtMArB/d324VsbiPkX/Yu0Q8T2xceRthoIVFhJdvgVM2QhGVUyX9tzwiNxGtoBJUw==",
       "license": "Apache-2.0",
-      "peer": true,
       "dependencies": {
         "@opentelemetry/core": "2.0.1",
         "@opentelemetry/semantic-conventions": "^1.29.0"
@@ -3021,7 +3017,6 @@
       "resolved": "https://registry.npmjs.org/@opentelemetry/sdk-metrics/-/sdk-metrics-2.0.1.tgz",
       "integrity": "sha512-wf8OaJoSnujMAHWR3g+/hGvNcsC16rf9s1So4JlMiFaFHiE4HpIA3oUh+uWZQ7CNuK8gVW/pQSkgoa5HkkOl0g==",
       "license": "Apache-2.0",
-      "peer": true,
       "dependencies": {
         "@opentelemetry/core": "2.0.1",
         "@opentelemetry/resources": "2.0.1"
@@ -3074,7 +3069,6 @@
       "resolved": "https://registry.npmjs.org/@opentelemetry/sdk-trace-base/-/sdk-trace-base-2.0.1.tgz",
       "integrity": "sha512-xYLlvk/xdScGx1aEqvxLwf6sXQLXCjk3/1SQT9X9AoN5rXRhkdvIFShuNNmtTEPRBqcsMbS4p/gJLNI2wXaDuQ==",
       "license": "Apache-2.0",
-      "peer": true,
       "dependencies": {
         "@opentelemetry/core": "2.0.1",
         "@opentelemetry/resources": "2.0.1",
@@ -4285,7 +4279,6 @@
       "integrity": "sha512-6mDvHUFSjyT2B2yeNx2nUgMxh9LtOWvkhIU3uePn2I2oyNymUAX1NIsdgviM4CH+JSrp2D2hsMvJOkxY+0wNRA==",
       "devOptional": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "csstype": "^3.0.2"
       }
@@ -4573,7 +4566,6 @@
       "integrity": "sha512-6sMvZePQrnZH2/cJkwRpkT7DxoAWh+g6+GFRK6bV3YQo7ogi3SX5rgF6099r5Q53Ma5qeT7LGmOmuIutF4t3lA==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@typescript-eslint/scope-manager": "8.35.0",
         "@typescript-eslint/types": "8.35.0",
@@ -5497,7 +5489,6 @@
       "resolved": "https://registry.npmjs.org/acorn/-/acorn-8.15.0.tgz",
       "integrity": "sha512-NZyJarBfL7nWwIq+FDL6Zp/yHEhePMNnnJ0y3qfieCrmNvYct8uvtiV41UvlSe6apAfk0fY1FbWx+NwfmpvtTg==",
       "license": "MIT",
-      "peer": true,
       "bin": {
         "acorn": "bin/acorn"
       },
@@ -5933,7 +5924,8 @@
       "version": "1.1.1",
       "resolved": "https://registry.npmjs.org/array-flatten/-/array-flatten-1.1.1.tgz",
       "integrity": "sha512-PCVAQswWemu6UdxsDFFX/+gVeYqKAod3D3UVm91jHwynguOwAvYPhx8nNlM++NqRcK6CxxpUafjmhIdKiHibqg==",
-      "license": "MIT"
+      "license": "MIT",
+      "peer": true
     },
     "node_modules/array-includes": {
       "version": "3.1.9",
@@ -7197,6 +7189,7 @@
       "resolved": "https://registry.npmjs.org/content-disposition/-/content-disposition-0.5.4.tgz",
       "integrity": "sha512-FveZTNuGw04cxlAiWbzi6zTAL/lhehaWbTtgluJh4/E95DqMwTmha3KZN1aAWA8cFIhHzMZUvLevkw5Rqk+tSQ==",
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "safe-buffer": "5.2.1"
       },
@@ -8212,7 +8205,6 @@
       "integrity": "sha512-GsGizj2Y1rCWDu6XoEekL3RLilp0voSePurjZIkxL3wlm5o5EC9VpgaP7lrCvjnkuLvzFBQWB3vWB3K5KQTveQ==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@eslint-community/eslint-utils": "^4.2.0",
         "@eslint-community/regexpp": "^4.12.1",
@@ -8802,6 +8794,7 @@
       "resolved": "https://registry.npmjs.org/cookie/-/cookie-0.7.1.tgz",
       "integrity": "sha512-6DnInpx7SJ2AK3+CTUE/ZM0vWTUboZCegxhC2xiIydHR9jNuTAASBrfEpHhiGOZw/nX51bHt6YQl8jsGo4y/0w==",
       "license": "MIT",
+      "peer": true,
       "engines": {
         "node": ">= 0.6"
       }
@@ -8811,6 +8804,7 @@
       "resolved": "https://registry.npmjs.org/debug/-/debug-2.6.9.tgz",
       "integrity": "sha512-bC7ElrdJaJnPbAP+1EotYvqZsb3ecl5wi6Bfi6BJTUcNowp6cvspg0jXznRTKDjm/E7AdgFBVeAPVMNcKGsHMA==",
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "ms": "2.0.0"
       }
@@ -8820,6 +8814,7 @@
       "resolved": "https://registry.npmjs.org/statuses/-/statuses-2.0.1.tgz",
       "integrity": "sha512-RwNA9Z/7PrK06rYLIzFMlaF+l73iwpzsqRIFgbMLbTcLD6cOao82TaWefPXQvB2fOC4AjuYSEndS7N/mTCbkdQ==",
       "license": "MIT",
+      "peer": true,
       "engines": {
         "node": ">= 0.8"
       }
@@ -9073,6 +9068,7 @@
       "resolved": "https://registry.npmjs.org/finalhandler/-/finalhandler-1.3.1.tgz",
       "integrity": "sha512-6BN9trH7bp3qvnrRyzsBz+g3lZxTNZTbVO2EV1CS0WIcDbawYVdYvGflME/9QP0h0pYlCDBCTjYa9nZzMDpyxQ==",
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "debug": "2.6.9",
         "encodeurl": "~2.0.0",
@@ -9091,6 +9087,7 @@
       "resolved": "https://registry.npmjs.org/debug/-/debug-2.6.9.tgz",
       "integrity": "sha512-bC7ElrdJaJnPbAP+1EotYvqZsb3ecl5wi6Bfi6BJTUcNowp6cvspg0jXznRTKDjm/E7AdgFBVeAPVMNcKGsHMA==",
       "license": "MIT",
+      "peer": true,
       "dependencies": {
         "ms": "2.0.0"
       }
@@ -9099,13 +9096,15 @@
       "version": "2.0.0",
       "resolved": "https://registry.npmjs.org/ms/-/ms-2.0.0.tgz",
       "integrity": "sha512-Tpp60P6IUJDTuOq/5Z8cdskzJujfwqfOTkrwIwj7IRISpnkJnT6SyJ4PCPnGMoFjC9ddhal5KVIYtAt97ix05A==",
-      "license": "MIT"
+      "license": "MIT",
+      "peer": true
     },
     "node_modules/finalhandler/node_modules/statuses": {
       "version": "2.0.1",
       "resolved": "https://registry.npmjs.org/statuses/-/statuses-2.0.1.tgz",
       "integrity": "sha512-RwNA9Z/7PrK06rYLIzFMlaF+l73iwpzsqRIFgbMLbTcLD6cOao82TaWefPXQvB2fOC4AjuYSEndS7N/mTCbkdQ==",
       "license": "MIT",
+      "peer": true,
       "engines": {
         "node": ">= 0.8"
       }
@@ -10316,7 +10315,6 @@
       "resolved": "https://registry.npmjs.org/@jrichman/ink/-/ink-6.4.5.tgz",
       "integrity": "sha512-mIDkZqtJbedL9XDOoqoJt3S8aGQVqEJYnCnSeLlYzkpUWCsSWC0hW40yJ0DLH86lcl8k5R5lv/9C2i/3746nWw==",
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@alcalzone/ansi-tokenize": "^0.2.1",
         "ansi-escapes": "^7.0.0",
@@ -13424,7 +13422,8 @@
       "version": "0.1.12",
       "resolved": "https://registry.npmjs.org/path-to-regexp/-/path-to-regexp-0.1.12.tgz",
       "integrity": "sha512-RA1GjUVMnvYFxuqovrEqZoxxW5NUZqbwKtYz/Tt7nXerk0LbLblQmrsgdeOxV5SFHf0UDggjS/bSeOZwt1pmEQ==",
-      "license": "MIT"
+      "license": "MIT",
+      "peer": true
     },
     "node_modules/path-type": {
       "version": "3.0.0",
@@ -13959,7 +13958,6 @@
       "resolved": "https://registry.npmjs.org/react/-/react-19.2.0.tgz",
       "integrity": "sha512-tmbWg6W31tQLeB5cdIBOicJDJRR2KzXsV7uSK9iNfLWQ5bIZfxuPEHp7M8wiHyHnn0DD1i7w3Zmin0FtkrwoCQ==",
       "license": "MIT",
-      "peer": true,
       "engines": {
         "node": ">=0.10.0"
       }
@@ -13970,7 +13968,6 @@
       "integrity": "sha512-ePrwPfxAnB+7hgnEr8vpKxL9cmnp7F322t8oqcPshbIQQhDKgFDW4tjhF2wjVbdXF9O/nyuy3sQWd9JGpiLPvA==",
       "devOptional": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "shell-quote": "^1.6.1",
         "ws": "^7"
@@ -16189,7 +16186,6 @@
       "integrity": "sha512-5gTmgEY/sqK6gFXLIsQNH19lWb4ebPDLA4SdLP7dsWkIXHWlG66oPuVvXSGFPppYZz8ZDZq0dYYrbHfBCVUb1Q==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "engines": {
         "node": ">=12"
       },
@@ -16354,8 +16350,7 @@
       "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.8.1.tgz",
       "integrity": "sha512-oJFu94HQb+KVduSUQL7wnpmqnfmLsOA/nAh6b6EH0wCEoK0/mPeXU6c3wKDV83MkOuHPRHtSXKKU99IBazS/2w==",
       "dev": true,
-      "license": "0BSD",
-      "peer": true
+      "license": "0BSD"
     },
     "node_modules/tsx": {
       "version": "4.20.3",
@@ -16363,7 +16358,6 @@
       "integrity": "sha512-qjbnuR9Tr+FJOMBqJCW5ehvIo/buZq7vH7qD7JziU98h6l3qGy0a/yPFjwO+y0/T7GFpNgNAvEcPPVfyT8rrPQ==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "esbuild": "~0.25.0",
         "get-tsconfig": "^4.7.5"
@@ -16548,7 +16542,6 @@
       "integrity": "sha512-p1diW6TqL9L07nNxvRMM7hMMw4c5XOo/1ibL4aAIGmSAt9slTE1Xgw5KWuof2uTOvCg9BY7ZRi+GaF+7sfgPeQ==",
       "dev": true,
       "license": "Apache-2.0",
-      "peer": true,
       "bin": {
         "tsc": "bin/tsc",
         "tsserver": "bin/tsserver"
@@ -16711,6 +16704,7 @@
       "resolved": "https://registry.npmjs.org/utils-merge/-/utils-merge-1.0.1.tgz",
       "integrity": "sha512-pMZTvIkT1d+TFGvDOqodOclx0QWkkgi6Tdoa8gC8ffGAAqz9pzPTZWAybbsHHoED/ztMtkv/VoYTYyShUn81hA==",
       "license": "MIT",
+      "peer": true,
       "engines": {
         "node": ">= 0.4.0"
       }
@@ -16766,7 +16760,6 @@
       "integrity": "sha512-BxAKBWmIbrDgrokdGZH1IgkIk/5mMHDreLDmCJ0qpyJaAteP8NvMhkwr/ZCQNqNH97bw/dANTE9PDzqwJghfMQ==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "esbuild": "^0.25.0",
         "fdir": "^6.5.0",
@@ -16883,7 +16876,6 @@
       "integrity": "sha512-5gTmgEY/sqK6gFXLIsQNH19lWb4ebPDLA4SdLP7dsWkIXHWlG66oPuVvXSGFPppYZz8ZDZq0dYYrbHfBCVUb1Q==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "engines": {
         "node": ">=12"
       },
@@ -16897,7 +16889,6 @@
       "integrity": "sha512-LUCP5ev3GURDysTWiP47wRRUpLKMOfPh+yKTx3kVIEiu5KOMeqzpnYNsKyOoVrULivR8tLcks4+lga33Whn90A==",
       "dev": true,
       "license": "MIT",
-      "peer": true,
       "dependencies": {
         "@types/chai": "^5.2.2",
         "@vitest/expect": "3.2.4",
@@ -17604,7 +17595,6 @@
       "resolved": "https://registry.npmjs.org/zod/-/zod-3.25.76.tgz",
       "integrity": "sha512-gzUt/qt81nXsFGKIFcC3YnfEAx5NkunCfnDlvuBSSFS02bcXu4Lmea0AFIUwbLWxWPx3d9p8S5QoaujKcNQxcQ==",
       "license": "MIT",
-      "peer": true,
       "funding": {
         "url": "https://github.com/sponsors/colinhacks"
       }
@@ -17620,7 +17610,7 @@
     },
     "packages/a2a-server": {
       "name": "@google/gemini-cli-a2a-server",
-      "version": "0.18.0-nightly.20251120.2231497b1",
+      "version": "0.18.0",
       "dependencies": {
         "@a2a-js/sdk": "^0.3.2",
         "@google-cloud/storage": "^7.16.0",
@@ -17910,7 +17900,7 @@
     },
     "packages/cli": {
       "name": "@google/gemini-cli",
-      "version": "0.18.0-nightly.20251120.2231497b1",
+      "version": "0.18.0",
       "dependencies": {
         "@google/gemini-cli-core": "file:../core",
         "@google/genai": "1.30.0",
@@ -18011,7 +18001,7 @@
     },
     "packages/core": {
       "name": "@google/gemini-cli-core",
-      "version": "0.18.0-nightly.20251120.2231497b1",
+      "version": "0.18.0",
       "dependencies": {
         "@google-cloud/logging": "^11.2.1",
         "@google-cloud/opentelemetry-cloud-monitoring-exporter": "^0.21.0",
@@ -18146,7 +18136,6 @@
       "resolved": "https://registry.npmjs.org/picomatch/-/picomatch-4.0.3.tgz",
       "integrity": "sha512-5gTmgEY/sqK6gFXLIsQNH19lWb4ebPDLA4SdLP7dsWkIXHWlG66oPuVvXSGFPppYZz8ZDZq0dYYrbHfBCVUb1Q==",
       "license": "MIT",
-      "peer": true,
       "engines": {
         "node": ">=12"
       },
@@ -18156,7 +18145,7 @@
     },
     "packages/test-utils": {
       "name": "@google/gemini-cli-test-utils",
-      "version": "0.18.0-nightly.20251120.2231497b1",
+      "version": "0.18.0",
       "license": "Apache-2.0",
       "devDependencies": {
         "typescript": "^5.3.3"
@@ -18167,7 +18156,7 @@
     },
     "packages/vscode-ide-companion": {
       "name": "gemini-cli-vscode-ide-companion",
-      "version": "0.18.0-nightly.20251120.2231497b1",
+      "version": "0.18.0",
       "license": "LICENSE",
       "dependencies": {
         "@modelcontextprotocol/sdk": "^1.15.1",

package.json

@@ -1,6 +1,6 @@
 {
   "name": "@google/gemini-cli",
-  "version": "0.18.0-nightly.20251120.2231497b1",
+  "version": "0.18.0",
   "engines": {
     "node": ">=20.0.0"
   },
@@ -14,7 +14,7 @@
     "url": "git+https://github.com/google-gemini/gemini-cli.git"
   },
   "config": {
-    "sandboxImageUri": "us-docker.pkg.dev/gemini-code-dev/gemini-cli/sandbox:0.18.0-nightly.20251120.2231497b1"
+    "sandboxImageUri": "us-docker.pkg.dev/gemini-code-dev/gemini-cli/sandbox:0.18.0"
   },
   "scripts": {
     "start": "cross-env NODE_ENV=development node scripts/start.js",

packages/a2a-server/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@google/gemini-cli-a2a-server",
-  "version": "0.18.0-nightly.20251120.2231497b1",
+  "version": "0.18.0",
   "description": "Gemini CLI A2A Server",
   "repository": {
     "type": "git",

packages/cli/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@google/gemini-cli",
-  "version": "0.18.0-nightly.20251120.2231497b1",
+  "version": "0.18.0",
   "description": "Gemini CLI",
   "repository": {
     "type": "git",
@@ -25,7 +25,7 @@
     "dist"
   ],
   "config": {
-    "sandboxImageUri": "us-docker.pkg.dev/gemini-code-dev/gemini-cli/sandbox:0.18.0-nightly.20251120.2231497b1"
+    "sandboxImageUri": "us-docker.pkg.dev/gemini-code-dev/gemini-cli/sandbox:0.18.0"
   },
   "dependencies": {
     "@google/gemini-cli-core": "file:../core",

packages/cli/src/config/settingsSchema.ts

@@ -516,7 +516,7 @@ const SETTINGS_SCHEMA = {
         label: 'Use Alternate Screen Buffer',
         category: 'UI',
         requiresRestart: true,
-        default: true,
+        default: false,
         description:
           'Use an alternate screen buffer for the UI, preserving shell history.',
         showInDialog: true,

packages/cli/src/gemini.test.tsx

@@ -512,6 +512,7 @@ describe('startInteractiveUI', () => {
     merged: {
       ui: {
         hideWindowTitle: false,
+        useAlternateBuffer: true,
       },
     },
   } as LoadedSettings;

packages/cli/src/test-utils/render.tsx

@@ -176,7 +176,7 @@ export const renderWithProviders = (
     width,
     mouseEventsEnabled = false,
     config = configProxy as unknown as Config,
-    useAlternateBuffer,
+    useAlternateBuffer = true,
     uiActions,
   }: {
     shellFocus?: boolean;

packages/cli/src/ui/AppContainer.tsx

@@ -705,6 +705,7 @@ Logging in with Google... Please restart Gemini CLI to continue.
     handleApprovalModeChange,
     activePtyId,
     loopDetectionConfirmationRequest,
+    lastOutputTime,
   } = useGeminiStream(
     config.getGeminiClient(),
     historyManager.history,
@@ -1104,6 +1105,8 @@ Logging in with Google... Please restart Gemini CLI to continue.
   const { elapsedTime, currentLoadingPhrase } = useLoadingIndicator(
     streamingState,
     settings.merged.ui?.customWittyPhrases,
+    !!activePtyId && !embeddedShellFocused,
+    lastOutputTime,
   );
 
   const handleGlobalKeypress = useCallback(

packages/cli/src/ui/components/AppHeader.test.tsx

@@ -8,6 +8,7 @@ import { renderWithProviders } from '../../test-utils/render.js';
 import { AppHeader } from './AppHeader.js';
 import { describe, it, expect, vi, beforeEach } from 'vitest';
 import { makeFakeConfig } from '@google/gemini-cli-core';
+import crypto from 'node:crypto';
 
 const persistentStateMock = vi.hoisted(() => ({
   get: vi.fn(),
@@ -25,7 +26,7 @@ vi.mock('../utils/terminalSetup.js', () => ({
 describe('<AppHeader />', () => {
   beforeEach(() => {
     vi.clearAllMocks();
-    persistentStateMock.get.mockReturnValue(0);
+    persistentStateMock.get.mockReturnValue({});
   });
 
   it('should render the banner with default text', () => {
@@ -146,8 +147,8 @@ describe('<AppHeader />', () => {
     unmount();
   });
 
-  it('should increment the shown count when default banner is displayed', () => {
-    persistentStateMock.get.mockReturnValue(0);
+  it('should increment the version count when default banner is displayed', () => {
+    persistentStateMock.get.mockReturnValue({});
     const mockConfig = makeFakeConfig();
     const uiState = {
       bannerData: {
@@ -163,7 +164,12 @@ describe('<AppHeader />', () => {
 
     expect(persistentStateMock.set).toHaveBeenCalledWith(
       'defaultBannerShownCount',
-      1,
+      {
+        [crypto
+          .createHash('sha256')
+          .update(uiState.bannerData.defaultText)
+          .digest('hex')]: 1,
+      },
     );
     unmount();
   });

packages/cli/src/ui/components/AppHeader.tsx

@@ -10,9 +10,8 @@ import { Tips } from './Tips.js';
 import { useSettings } from '../contexts/SettingsContext.js';
 import { useConfig } from '../contexts/ConfigContext.js';
 import { useUIState } from '../contexts/UIStateContext.js';
-import { persistentState } from '../../utils/persistentState.js';
-import { useEffect, useRef, useState } from 'react';
 import { Banner } from './Banner.js';
+import { useBanner } from '../hooks/useBanner.js';
 
 interface AppHeaderProps {
   version: string;
@@ -23,27 +22,7 @@ export const AppHeader = ({ version }: AppHeaderProps) => {
   const config = useConfig();
   const { nightly, mainAreaWidth, bannerData, bannerVisible } = useUIState();
 
-  const [defaultBannerShownCount] = useState(
-    () => persistentState.get('defaultBannerShownCount') || 0,
-  );
-
-  const { defaultText, warningText } = bannerData;
-
-  const showDefaultBanner =
-    warningText === '' &&
-    !config.getPreviewFeatures() &&
-    defaultBannerShownCount < 5;
-
-  const bannerText = showDefaultBanner ? defaultText : warningText;
-
-  const hasIncrementedRef = useRef(false);
-  useEffect(() => {
-    if (showDefaultBanner && defaultText && !hasIncrementedRef.current) {
-      hasIncrementedRef.current = true;
-      const current = persistentState.get('defaultBannerShownCount') || 0;
-      persistentState.set('defaultBannerShownCount', current + 1);
-    }
-  }, [showDefaultBanner, defaultText]);
+  const { bannerText } = useBanner(bannerData, config);
 
   return (
     <Box flexDirection="column">
@@ -54,7 +33,7 @@ export const AppHeader = ({ version }: AppHeaderProps) => {
             <Banner
               width={mainAreaWidth}
               bannerText={bannerText}
-              isWarning={warningText !== ''}
+              isWarning={bannerData.warningText !== ''}
             />
           )}
         </>

packages/cli/src/ui/components/LoadingIndicator.tsx

@@ -14,6 +14,7 @@ import { GeminiRespondingSpinner } from './GeminiRespondingSpinner.js';
 import { formatDuration } from '../utils/formatters.js';
 import { useTerminalSize } from '../hooks/useTerminalSize.js';
 import { isNarrowWidth } from '../utils/isNarrowWidth.js';
+import { INTERACTIVE_SHELL_WAITING_PHRASE } from '../hooks/usePhraseCycler.js';
 
 interface LoadingIndicatorProps {
   currentLoadingPhrase?: string;
@@ -36,7 +37,12 @@ export const LoadingIndicator: React.FC<LoadingIndicatorProps> = ({
     return null;
   }
 
-  const primaryText = thought?.subject || currentLoadingPhrase;
+  // Prioritize the interactive shell waiting phrase over the thought subject
+  // because it conveys an actionable state for the user (waiting for input).
+  const primaryText =
+    currentLoadingPhrase === INTERACTIVE_SHELL_WAITING_PHRASE
+      ? currentLoadingPhrase
+      : thought?.subject || currentLoadingPhrase;
 
   const cancelAndTimerContent =
     streamingState !== StreamingState.WaitingForConfirmation

packages/cli/src/ui/components/ProQuotaDialog.tsx

@@ -12,7 +12,7 @@ import { theme } from '../semantic-colors.js';
 import {
   DEFAULT_GEMINI_FLASH_LITE_MODEL,
   DEFAULT_GEMINI_FLASH_MODEL,
-  PREVIEW_GEMINI_MODEL,
+  DEFAULT_GEMINI_MODEL,
   UserTierId,
 } from '@google/gemini-cli-core';
 
@@ -127,7 +127,7 @@ export function ProQuotaDialog({
         <RadioButtonSelect items={items} onSelect={handleSelect} />
       </Box>
       <Text color={theme.text.primary}>
-        {failedModel === PREVIEW_GEMINI_MODEL && !isModelNotFoundError
+        {fallbackModel === DEFAULT_GEMINI_MODEL && !isModelNotFoundError
           ? 'Note: We will periodically retry Preview Model to see if congestion has cleared.'
           : 'Note: You can always use /model to select a different option.'}
       </Text>

packages/cli/src/ui/components/messages/ShellToolMessage.tsx

@@ -9,7 +9,11 @@ import { Box, Text, type DOMElement } from 'ink';
 import { ToolCallStatus } from '../../types.js';
 import { ShellInputPrompt } from '../ShellInputPrompt.js';
 import { StickyHeader } from '../StickyHeader.js';
-import { SHELL_COMMAND_NAME, SHELL_NAME } from '../../constants.js';
+import {
+  SHELL_COMMAND_NAME,
+  SHELL_NAME,
+  SHELL_FOCUS_HINT_DELAY_MS,
+} from '../../constants.js';
 import { theme } from '../../semantic-colors.js';
 import { SHELL_TOOL_NAME } from '@google/gemini-cli-core';
 import { useUIActions } from '../../contexts/UIActionsContext.js';
@@ -104,7 +108,7 @@ export const ShellToolMessage: React.FC<ShellToolMessageProps> = ({
 
     const timer = setTimeout(() => {
       setShowFocusHint(true);
-    }, 5000);
+    }, SHELL_FOCUS_HINT_DELAY_MS);
 
     return () => clearTimeout(timer);
   }, [lastUpdateTime]);

packages/cli/src/ui/components/messages/ToolMessage.tsx

@@ -5,7 +5,8 @@
  */
 
 import type React from 'react';
-import { Box } from 'ink';
+import { useState, useEffect } from 'react';
+import { Box, Text } from 'ink';
 import type { IndividualToolCallDisplay } from '../../types.js';
 import { StickyHeader } from '../StickyHeader.js';
 import { ToolResultDisplay } from './ToolResultDisplay.js';
@@ -14,7 +15,17 @@ import {
   ToolInfo,
   TrailingIndicator,
   type TextEmphasis,
+  STATUS_INDICATOR_WIDTH,
 } from './ToolShared.js';
+import {
+  SHELL_COMMAND_NAME,
+  SHELL_FOCUS_HINT_DELAY_MS,
+} from '../../constants.js';
+import { theme } from '../../semantic-colors.js';
+import type { Config } from '@google/gemini-cli-core';
+import { useInactivityTimer } from '../../hooks/useInactivityTimer.js';
+import { ToolCallStatus } from '../../types.js';
+import { ShellInputPrompt } from '../ShellInputPrompt.js';
 
 export type { TextEmphasis };
 
@@ -26,6 +37,10 @@ export interface ToolMessageProps extends IndividualToolCallDisplay {
   isFirst: boolean;
   borderColor: string;
   borderDimColor: boolean;
+  activeShellPtyId?: number | null;
+  embeddedShellFocused?: boolean;
+  ptyId?: number;
+  config?: Config;
 }
 
 export const ToolMessage: React.FC<ToolMessageProps> = ({
@@ -40,41 +55,96 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
   isFirst,
   borderColor,
   borderDimColor,
-}) => (
-  <Box flexDirection="column" width={terminalWidth}>
-    <StickyHeader
-      width={terminalWidth}
-      isFirst={isFirst}
-      borderColor={borderColor}
-      borderDimColor={borderDimColor}
-    >
-      <ToolStatusIndicator status={status} name={name} />
-      <ToolInfo
-        name={name}
-        status={status}
-        description={description}
-        emphasis={emphasis}
-      />
-      {emphasis === 'high' && <TrailingIndicator />}
-    </StickyHeader>
-    <Box
-      width={terminalWidth}
-      borderStyle="round"
-      borderColor={borderColor}
-      borderDimColor={borderDimColor}
-      borderTop={false}
-      borderBottom={false}
-      borderLeft={true}
-      borderRight={true}
-      paddingX={1}
-      flexDirection="column"
-    >
-      <ToolResultDisplay
-        resultDisplay={resultDisplay}
-        availableTerminalHeight={availableTerminalHeight}
-        terminalWidth={terminalWidth}
-        renderOutputAsMarkdown={renderOutputAsMarkdown}
-      />
+  activeShellPtyId,
+  embeddedShellFocused,
+  ptyId,
+  config,
+}) => {
+  const isThisShellFocused =
+    (name === SHELL_COMMAND_NAME || name === 'Shell') &&
+    status === ToolCallStatus.Executing &&
+    ptyId === activeShellPtyId &&
+    embeddedShellFocused;
+
+  const [lastUpdateTime, setLastUpdateTime] = useState<Date | null>(null);
+  const [userHasFocused, setUserHasFocused] = useState(false);
+  const showFocusHint = useInactivityTimer(
+    !!lastUpdateTime,
+    lastUpdateTime ? lastUpdateTime.getTime() : 0,
+    SHELL_FOCUS_HINT_DELAY_MS,
+  );
+
+  useEffect(() => {
+    if (resultDisplay) {
+      setLastUpdateTime(new Date());
+    }
+  }, [resultDisplay]);
+
+  useEffect(() => {
+    if (isThisShellFocused) {
+      setUserHasFocused(true);
+    }
+  }, [isThisShellFocused]);
+
+  const isThisShellFocusable =
+    (name === SHELL_COMMAND_NAME || name === 'Shell') &&
+    status === ToolCallStatus.Executing &&
+    config?.getEnableInteractiveShell();
+
+  const shouldShowFocusHint =
+    isThisShellFocusable && (showFocusHint || userHasFocused);
+
+  return (
+    <Box flexDirection="column" width={terminalWidth}>
+      <StickyHeader
+        width={terminalWidth}
+        isFirst={isFirst}
+        borderColor={borderColor}
+        borderDimColor={borderDimColor}
+      >
+        <ToolStatusIndicator status={status} name={name} />
+        <ToolInfo
+          name={name}
+          status={status}
+          description={description}
+          emphasis={emphasis}
+        />
+        {shouldShowFocusHint && (
+          <Box marginLeft={1} flexShrink={0}>
+            <Text color={theme.text.accent}>
+              {isThisShellFocused ? '(Focused)' : '(ctrl+f to focus)'}
+            </Text>
+          </Box>
+        )}
+        {emphasis === 'high' && <TrailingIndicator />}
+      </StickyHeader>
+      <Box
+        width={terminalWidth}
+        borderStyle="round"
+        borderColor={borderColor}
+        borderDimColor={borderDimColor}
+        borderTop={false}
+        borderBottom={false}
+        borderLeft={true}
+        borderRight={true}
+        paddingX={1}
+        flexDirection="column"
+      >
+        <ToolResultDisplay
+          resultDisplay={resultDisplay}
+          availableTerminalHeight={availableTerminalHeight}
+          terminalWidth={terminalWidth}
+          renderOutputAsMarkdown={renderOutputAsMarkdown}
+        />
+        {isThisShellFocused && config && (
+          <Box paddingLeft={STATUS_INDICATOR_WIDTH} marginTop={1}>
+            <ShellInputPrompt
+              activeShellPtyId={activeShellPtyId ?? null}
+              focus={embeddedShellFocused}
+            />
+          </Box>
+        )}
+      </Box>
     </Box>
-  </Box>
-);
+  );
+};

packages/cli/src/ui/constants.ts

@@ -24,6 +24,8 @@ export const SHELL_NAME = 'Shell';
 // usage.
 export const MAX_GEMINI_MESSAGE_LINES = 65536;
 
+export const SHELL_FOCUS_HINT_DELAY_MS = 5000;
+
 // Tool status symbols used in ToolMessage component
 export const TOOL_STATUS = {
   SUCCESS: '✓',

packages/cli/src/ui/hooks/shellCommandProcessor.ts

@@ -76,6 +76,8 @@ export const useShellCommandProcessor = (
   terminalHeight?: number,
 ) => {
   const [activeShellPtyId, setActiveShellPtyId] = useState<number | null>(null);
+  const [lastShellOutputTime, setLastShellOutputTime] = useState<number>(0);
+
   const handleShellCommand = useCallback(
     (rawQuery: PartListUnion, abortSignal: AbortSignal): boolean => {
       if (typeof rawQuery !== 'string' || rawQuery.trim() === '') {
@@ -202,6 +204,7 @@ export const useShellCommandProcessor = (
 
               // Throttle pending UI updates, but allow forced updates.
               if (shouldUpdate) {
+                setLastShellOutputTime(Date.now());
                 setPendingHistoryItem((prevItem) => {
                   if (prevItem?.type === 'tool_group') {
                     return {
@@ -366,5 +369,5 @@ export const useShellCommandProcessor = (
     ],
   );
 
-  return { handleShellCommand, activeShellPtyId };
+  return { handleShellCommand, activeShellPtyId, lastShellOutputTime };
 };

packages/cli/src/ui/hooks/useAlternateBuffer.ts

@@ -8,7 +8,7 @@ import { useSettings } from '../contexts/SettingsContext.js';
 import type { LoadedSettings } from '../../config/settings.js';
 
 export const isAlternateBufferEnabled = (settings: LoadedSettings): boolean =>
-  settings.merged.ui?.useAlternateBuffer !== false;
+  settings.merged.ui?.useAlternateBuffer === true;
 
 export const useAlternateBuffer = (): boolean => {
   const settings = useSettings();

packages/cli/src/ui/hooks/useBanner.test.ts

@@ -0,0 +1,147 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import {
+  describe,
+  it,
+  expect,
+  vi,
+  beforeEach,
+  type MockedFunction,
+} from 'vitest';
+import { renderHook } from '../../test-utils/render.js';
+import { useBanner } from './useBanner.js';
+import { persistentState } from '../../utils/persistentState.js';
+import type { Config } from '@google/gemini-cli-core';
+import crypto from 'node:crypto';
+
+vi.mock('../../utils/persistentState.js', () => ({
+  persistentState: {
+    get: vi.fn(),
+    set: vi.fn(),
+  },
+}));
+
+vi.mock('../semantic-colors.js', () => ({
+  theme: {
+    status: {
+      warning: 'mock-warning-color',
+    },
+  },
+}));
+
+vi.mock('../colors.js', () => ({
+  Colors: {
+    AccentBlue: 'mock-accent-blue',
+  },
+}));
+
+// Define the shape of the config methods used by this hook
+interface MockConfigShape {
+  getPreviewFeatures: MockedFunction<() => boolean>;
+}
+
+describe('useBanner', () => {
+  let mockConfig: MockConfigShape;
+  const mockedPersistentStateGet = persistentState.get as MockedFunction<
+    typeof persistentState.get
+  >;
+  const mockedPersistentStateSet = persistentState.set as MockedFunction<
+    typeof persistentState.set
+  >;
+
+  const defaultBannerData = {
+    defaultText: 'Standard Banner',
+    warningText: '',
+  };
+
+  beforeEach(() => {
+    vi.resetAllMocks();
+
+    // Initialize the mock config with default behavior
+    mockConfig = {
+      getPreviewFeatures: vi.fn().mockReturnValue(false),
+    };
+
+    // Default persistentState behavior: return empty object (no counts)
+    mockedPersistentStateGet.mockReturnValue({});
+  });
+
+  it('should return warning text and warning color if warningText is present', () => {
+    const data = { defaultText: 'Standard', warningText: 'Critical Error' };
+
+    const { result } = renderHook(() =>
+      useBanner(data, mockConfig as unknown as Config),
+    );
+
+    expect(result.current.bannerText).toBe('Critical Error');
+  });
+
+  it('should NOT show default banner if preview features are enabled in config', () => {
+    // Simulate Preview Features Enabled
+    mockConfig.getPreviewFeatures.mockReturnValue(true);
+
+    const { result } = renderHook(() =>
+      useBanner(defaultBannerData, mockConfig as unknown as Config),
+    );
+
+    // Should fall back to warningText (which is empty)
+    expect(result.current.bannerText).toBe('');
+  });
+
+  it('should hide banner if show count exceeds max limit (Legacy format)', () => {
+    mockedPersistentStateGet.mockReturnValue({
+      [crypto
+        .createHash('sha256')
+        .update(defaultBannerData.defaultText)
+        .digest('hex')]: 5,
+    });
+
+    const { result } = renderHook(() =>
+      useBanner(defaultBannerData, mockConfig as unknown as Config),
+    );
+
+    expect(result.current.bannerText).toBe('');
+  });
+
+  it('should increment the persistent count when banner is shown', () => {
+    const data = { defaultText: 'Tracker', warningText: '' };
+
+    // Current count is 1
+    mockedPersistentStateGet.mockReturnValue({
+      [crypto.createHash('sha256').update(data.defaultText).digest('hex')]: 1,
+    });
+
+    renderHook(() => useBanner(data, mockConfig as unknown as Config));
+
+    // Expect set to be called with incremented count
+    expect(mockedPersistentStateSet).toHaveBeenCalledWith(
+      'defaultBannerShownCount',
+      {
+        [crypto.createHash('sha256').update(data.defaultText).digest('hex')]: 2,
+      },
+    );
+  });
+
+  it('should NOT increment count if warning text is shown instead', () => {
+    const data = { defaultText: 'Standard', warningText: 'Warning' };
+
+    renderHook(() => useBanner(data, mockConfig as unknown as Config));
+
+    // Since warning text takes precedence, default banner logic (and increment) is skipped
+    expect(mockedPersistentStateSet).not.toHaveBeenCalled();
+  });
+
+  it('should handle newline replacements', () => {
+    const data = { defaultText: 'Line1\\nLine2', warningText: '' };
+
+    const { result } = renderHook(() =>
+      useBanner(data, mockConfig as unknown as Config),
+    );
+
+    expect(result.current.bannerText).toBe('Line1\nLine2');
+  });
+});

packages/cli/src/ui/hooks/useBanner.ts

@@ -0,0 +1,73 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { useState, useEffect, useRef } from 'react';
+import { persistentState } from '../../utils/persistentState.js';
+import type { Config } from '@google/gemini-cli-core';
+import crypto from 'node:crypto';
+
+const DEFAULT_MAX_BANNER_SHOWN_COUNT = 5;
+
+interface BannerData {
+  defaultText: string;
+  warningText: string;
+}
+
+export function useBanner(bannerData: BannerData, config: Config) {
+  const { defaultText, warningText } = bannerData;
+
+  const [previewEnabled, setPreviewEnabled] = useState(
+    config.getPreviewFeatures(),
+  );
+
+  useEffect(() => {
+    const isEnabled = config.getPreviewFeatures();
+    if (isEnabled !== previewEnabled) {
+      setPreviewEnabled(isEnabled);
+    }
+  }, [config, previewEnabled]);
+
+  const [bannerCounts] = useState(
+    () => persistentState.get('defaultBannerShownCount') || {},
+  );
+
+  const hashedText = crypto
+    .createHash('sha256')
+    .update(defaultText)
+    .digest('hex');
+
+  const currentBannerCount = bannerCounts[hashedText] || 0;
+
+  const showDefaultBanner =
+    warningText === '' &&
+    !previewEnabled &&
+    currentBannerCount < DEFAULT_MAX_BANNER_SHOWN_COUNT;
+
+  const rawBannerText = showDefaultBanner ? defaultText : warningText;
+  const bannerText = rawBannerText.replace(/\\n/g, '\n');
+
+  const lastIncrementedKey = useRef<string | null>(null);
+
+  useEffect(() => {
+    if (showDefaultBanner && defaultText) {
+      if (lastIncrementedKey.current !== defaultText) {
+        lastIncrementedKey.current = defaultText;
+
+        const allCounts = persistentState.get('defaultBannerShownCount') || {};
+        const current = allCounts[hashedText] || 0;
+
+        persistentState.set('defaultBannerShownCount', {
+          ...allCounts,
+          [hashedText]: current + 1,
+        });
+      }
+    }
+  }, [showDefaultBanner, defaultText, hashedText]);
+
+  return {
+    bannerText,
+  };
+}

packages/cli/src/ui/hooks/useGeminiStream.ts

@@ -136,6 +136,7 @@ export const useGeminiStream = (
     markToolsAsSubmitted,
     setToolCallsForDisplay,
     cancelAllToolCalls,
+    lastToolOutputTime,
   ] = useReactToolScheduler(
     async (completedToolCallsFromScheduler) => {
       // This onComplete is called when ALL scheduled tools for a given batch are done.
@@ -211,17 +212,18 @@ export const useGeminiStream = (
     await done;
     setIsResponding(false);
   }, []);
-  const { handleShellCommand, activeShellPtyId } = useShellCommandProcessor(
-    addItem,
-    setPendingHistoryItem,
-    onExec,
-    onDebugMessage,
-    config,
-    geminiClient,
-    setShellInputFocused,
-    terminalWidth,
-    terminalHeight,
-  );
+  const { handleShellCommand, activeShellPtyId, lastShellOutputTime } =
+    useShellCommandProcessor(
+      addItem,
+      setPendingHistoryItem,
+      onExec,
+      onDebugMessage,
+      config,
+      geminiClient,
+      setShellInputFocused,
+      terminalWidth,
+      terminalHeight,
+    );
 
   const activePtyId = activeShellPtyId || activeToolPtyId;
 
@@ -681,8 +683,9 @@ export const useGeminiStream = (
         [FinishReason.UNEXPECTED_TOOL_CALL]:
           'Response stopped due to unexpected tool call.',
         [FinishReason.IMAGE_PROHIBITED_CONTENT]:
-          'Response stopped due to prohibited content.',
-        [FinishReason.NO_IMAGE]: 'Response stopped due to no image.',
+          'Response stopped due to prohibited image content.',
+        [FinishReason.NO_IMAGE]:
+          'Response stopped because no image was generated.',
       };
 
       const message = finishReasonMessages[finishReason];
@@ -1348,6 +1351,8 @@ export const useGeminiStream = (
     storage,
   ]);
 
+  const lastOutputTime = Math.max(lastToolOutputTime, lastShellOutputTime);
+
   return {
     streamingState,
     submitQuery,
@@ -1359,5 +1364,6 @@ export const useGeminiStream = (
     handleApprovalModeChange,
     activePtyId,
     loopDetectionConfirmationRequest,
+    lastOutputTime,
   };
 };

packages/cli/src/ui/hooks/useInactivityTimer.ts

@@ -0,0 +1,39 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { useState, useEffect } from 'react';
+
+/**
+ * Returns true after a specified delay of inactivity.
+ * Inactivity is defined as 'trigger' not changing for 'delayMs' milliseconds.
+ *
+ * @param isActive Whether the timer should be running.
+ * @param trigger Any value that, when changed, resets the inactivity timer.
+ * @param delayMs The delay in milliseconds before considering the state inactive.
+ */
+export const useInactivityTimer = (
+  isActive: boolean,
+  trigger: unknown,
+  delayMs: number = 5000,
+): boolean => {
+  const [isInactive, setIsInactive] = useState(false);
+
+  useEffect(() => {
+    if (!isActive) {
+      setIsInactive(false);
+      return;
+    }
+
+    setIsInactive(false);
+    const timer = setTimeout(() => {
+      setIsInactive(true);
+    }, delayMs);
+
+    return () => clearTimeout(timer);
+  }, [isActive, trigger, delayMs]);
+
+  return isInactive;
+};

packages/cli/src/ui/hooks/useLoadingIndicator.test.tsx

@@ -9,8 +9,12 @@ import { act } from 'react';
 import { render } from '../../test-utils/render.js';
 import { useLoadingIndicator } from './useLoadingIndicator.js';
 import { StreamingState } from '../types.js';
-import { PHRASE_CHANGE_INTERVAL_MS } from './usePhraseCycler.js';
+import {
+  PHRASE_CHANGE_INTERVAL_MS,
+  INTERACTIVE_SHELL_WAITING_PHRASE,
+} from './usePhraseCycler.js';
 import { WITTY_LOADING_PHRASES } from '../constants/wittyPhrases.js';
+import { INFORMATIVE_TIPS } from '../constants/tips.js';
 
 describe('useLoadingIndicator', () => {
   beforeEach(() => {
@@ -25,18 +29,33 @@ describe('useLoadingIndicator', () => {
 
   const renderLoadingIndicatorHook = (
     initialStreamingState: StreamingState,
+    initialIsInteractiveShellWaiting: boolean = false,
+    initialLastOutputTime: number = 0,
   ) => {
     let hookResult: ReturnType<typeof useLoadingIndicator>;
     function TestComponent({
       streamingState,
+      isInteractiveShellWaiting,
+      lastOutputTime,
     }: {
       streamingState: StreamingState;
+      isInteractiveShellWaiting?: boolean;
+      lastOutputTime?: number;
     }) {
-      hookResult = useLoadingIndicator(streamingState);
+      hookResult = useLoadingIndicator(
+        streamingState,
+        undefined,
+        isInteractiveShellWaiting,
+        lastOutputTime,
+      );
       return null;
     }
     const { rerender } = render(
-      <TestComponent streamingState={initialStreamingState} />,
+      <TestComponent
+        streamingState={initialStreamingState}
+        isInteractiveShellWaiting={initialIsInteractiveShellWaiting}
+        lastOutputTime={initialLastOutputTime}
+      />,
     );
     return {
       result: {
@@ -44,8 +63,11 @@ describe('useLoadingIndicator', () => {
           return hookResult;
         },
       },
-      rerender: (newProps: { streamingState: StreamingState }) =>
-        rerender(<TestComponent {...newProps} />),
+      rerender: (newProps: {
+        streamingState: StreamingState;
+        isInteractiveShellWaiting?: boolean;
+        lastOutputTime?: number;
+      }) => rerender(<TestComponent {...newProps} />),
     };
   };
 
@@ -58,6 +80,28 @@ describe('useLoadingIndicator', () => {
     );
   });
 
+  it('should show interactive shell waiting phrase when isInteractiveShellWaiting is true after 5s', async () => {
+    vi.spyOn(Math, 'random').mockImplementation(() => 0.5); // Always witty
+    const { result } = renderLoadingIndicatorHook(
+      StreamingState.Responding,
+      true,
+      1,
+    );
+
+    // Initially should be witty phrase or tip
+    expect([...WITTY_LOADING_PHRASES, ...INFORMATIVE_TIPS]).toContain(
+      result.current.currentLoadingPhrase,
+    );
+
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(5000);
+    });
+
+    expect(result.current.currentLoadingPhrase).toBe(
+      INTERACTIVE_SHELL_WAITING_PHRASE,
+    );
+  });
+
   it('should reflect values when Responding', async () => {
     vi.spyOn(Math, 'random').mockImplementation(() => 0.5); // Always witty for subsequent phrases
     const { result } = renderLoadingIndicatorHook(StreamingState.Responding);

packages/cli/src/ui/hooks/useLoadingIndicator.ts

@@ -12,6 +12,8 @@ import { useState, useEffect, useRef } from 'react'; // Added useRef
 export const useLoadingIndicator = (
   streamingState: StreamingState,
   customWittyPhrases?: string[],
+  isInteractiveShellWaiting: boolean = false,
+  lastOutputTime: number = 0,
 ) => {
   const [timerResetKey, setTimerResetKey] = useState(0);
   const isTimerActive = streamingState === StreamingState.Responding;
@@ -23,6 +25,8 @@ export const useLoadingIndicator = (
   const currentLoadingPhrase = usePhraseCycler(
     isPhraseCyclingActive,
     isWaiting,
+    isInteractiveShellWaiting,
+    lastOutputTime,
     customWittyPhrases,
   );
 

packages/cli/src/ui/hooks/usePhraseCycler.test.tsx

@@ -11,6 +11,7 @@ import { Text } from 'ink';
 import {
   usePhraseCycler,
   PHRASE_CHANGE_INTERVAL_MS,
+  INTERACTIVE_SHELL_WAITING_PHRASE,
 } from './usePhraseCycler.js';
 import { INFORMATIVE_TIPS } from '../constants/tips.js';
 import { WITTY_LOADING_PHRASES } from '../constants/wittyPhrases.js';
@@ -19,13 +20,23 @@ import { WITTY_LOADING_PHRASES } from '../constants/wittyPhrases.js';
 const TestComponent = ({
   isActive,
   isWaiting,
+  isInteractiveShellWaiting = false,
+  lastOutputTime = 0,
   customPhrases,
 }: {
   isActive: boolean;
   isWaiting: boolean;
+  isInteractiveShellWaiting?: boolean;
+  lastOutputTime?: number;
   customPhrases?: string[];
 }) => {
-  const phrase = usePhraseCycler(isActive, isWaiting, customPhrases);
+  const phrase = usePhraseCycler(
+    isActive,
+    isWaiting,
+    isInteractiveShellWaiting,
+    lastOutputTime,
+    customPhrases,
+  );
   return <Text>{phrase}</Text>;
 };
 
@@ -57,6 +68,102 @@ describe('usePhraseCycler', () => {
     expect(lastFrame()).toBe('Waiting for user confirmation...');
   });
 
+  it('should show interactive shell waiting message when isInteractiveShellWaiting is true after 5s', async () => {
+    vi.spyOn(Math, 'random').mockImplementation(() => 0.5); // Always witty
+    const { lastFrame, rerender } = render(
+      <TestComponent isActive={true} isWaiting={false} />,
+    );
+    rerender(
+      <TestComponent
+        isActive={true}
+        isWaiting={false}
+        isInteractiveShellWaiting={true}
+        lastOutputTime={1}
+      />,
+    );
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(0);
+    });
+    // Should still be showing a witty phrase or tip initially
+    expect([...WITTY_LOADING_PHRASES, ...INFORMATIVE_TIPS]).toContain(
+      lastFrame(),
+    );
+
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(5000);
+    });
+    expect(lastFrame()).toBe(INTERACTIVE_SHELL_WAITING_PHRASE);
+  });
+
+  it('should reset interactive shell waiting timer when lastOutputTime changes', async () => {
+    vi.spyOn(Math, 'random').mockImplementation(() => 0.5); // Always witty
+    const { lastFrame, rerender } = render(
+      <TestComponent
+        isActive={true}
+        isWaiting={false}
+        isInteractiveShellWaiting={true}
+        lastOutputTime={1000}
+      />,
+    );
+
+    // Advance 3 seconds
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(3000);
+    });
+    // Should still be witty phrase or tip
+    expect([...WITTY_LOADING_PHRASES, ...INFORMATIVE_TIPS]).toContain(
+      lastFrame(),
+    );
+
+    // Update lastOutputTime
+    rerender(
+      <TestComponent
+        isActive={true}
+        isWaiting={false}
+        isInteractiveShellWaiting={true}
+        lastOutputTime={4000}
+      />,
+    );
+
+    // Advance another 3 seconds (total 6s from start, but only 3s from last output)
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(3000);
+    });
+    // Should STILL be witty phrase or tip because timer reset
+    expect([...WITTY_LOADING_PHRASES, ...INFORMATIVE_TIPS]).toContain(
+      lastFrame(),
+    );
+
+    // Advance another 2 seconds (total 5s from last output)
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(2000);
+    });
+    expect(lastFrame()).toBe(INTERACTIVE_SHELL_WAITING_PHRASE);
+  });
+
+  it('should prioritize interactive shell waiting over normal waiting after 5s', async () => {
+    const { lastFrame, rerender } = render(
+      <TestComponent isActive={true} isWaiting={true} />,
+    );
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(0);
+    });
+    expect(lastFrame()).toBe('Waiting for user confirmation...');
+
+    rerender(
+      <TestComponent
+        isActive={true}
+        isWaiting={true}
+        isInteractiveShellWaiting={true}
+        lastOutputTime={1}
+      />,
+    );
+    await act(async () => {
+      await vi.advanceTimersByTimeAsync(5000);
+    });
+    expect(lastFrame()).toBe(INTERACTIVE_SHELL_WAITING_PHRASE);
+  });
+
   it('should not cycle phrases if isActive is false and not waiting', async () => {
     const { lastFrame } = render(
       <TestComponent isActive={false} isWaiting={false} />,

packages/cli/src/ui/hooks/usePhraseCycler.ts

@@ -5,20 +5,28 @@
  */
 
 import { useState, useEffect, useRef } from 'react';
+import { SHELL_FOCUS_HINT_DELAY_MS } from '../constants.js';
 import { INFORMATIVE_TIPS } from '../constants/tips.js';
 import { WITTY_LOADING_PHRASES } from '../constants/wittyPhrases.js';
+import { useInactivityTimer } from './useInactivityTimer.js';
 
 export const PHRASE_CHANGE_INTERVAL_MS = 15000;
+export const INTERACTIVE_SHELL_WAITING_PHRASE =
+  'Interactive shell awaiting input... press Ctrl+f to focus shell';
 
 /**
  * Custom hook to manage cycling through loading phrases.
  * @param isActive Whether the phrase cycling should be active.
  * @param isWaiting Whether to show a specific waiting phrase.
+ * @param isInteractiveShellWaiting Whether an interactive shell is waiting for input but not focused.
+ * @param customPhrases Optional list of custom phrases to use.
  * @returns The current loading phrase.
  */
 export const usePhraseCycler = (
   isActive: boolean,
   isWaiting: boolean,
+  isInteractiveShellWaiting: boolean,
+  lastOutputTime: number = 0,
   customPhrases?: string[],
 ) => {
   const loadingPhrases =
@@ -29,66 +37,79 @@ export const usePhraseCycler = (
   const [currentLoadingPhrase, setCurrentLoadingPhrase] = useState(
     loadingPhrases[0],
   );
+  const showShellFocusHint = useInactivityTimer(
+    isInteractiveShellWaiting && lastOutputTime > 0,
+    lastOutputTime,
+    SHELL_FOCUS_HINT_DELAY_MS,
+  );
   const phraseIntervalRef = useRef<NodeJS.Timeout | null>(null);
   const hasShownFirstRequestTipRef = useRef(false);
 
   useEffect(() => {
+    // Always clear on re-run
+    if (phraseIntervalRef.current) {
+      clearInterval(phraseIntervalRef.current);
+      phraseIntervalRef.current = null;
+    }
+
+    if (isInteractiveShellWaiting && showShellFocusHint) {
+      setCurrentLoadingPhrase(INTERACTIVE_SHELL_WAITING_PHRASE);
+      return;
+    }
+
     if (isWaiting) {
       setCurrentLoadingPhrase('Waiting for user confirmation...');
-      if (phraseIntervalRef.current) {
-        clearInterval(phraseIntervalRef.current);
-        phraseIntervalRef.current = null;
-      }
-    } else if (isActive) {
-      if (phraseIntervalRef.current) {
-        clearInterval(phraseIntervalRef.current);
-      }
-
-      const setRandomPhrase = () => {
-        if (customPhrases && customPhrases.length > 0) {
-          const randomIndex = Math.floor(Math.random() * customPhrases.length);
-          setCurrentLoadingPhrase(customPhrases[randomIndex]);
-        } else {
-          let phraseList;
-          // Show a tip on the first request after startup, then continue with 1/6 chance
-          if (!hasShownFirstRequestTipRef.current) {
-            // Show a tip during the first request
-            phraseList = INFORMATIVE_TIPS;
-            hasShownFirstRequestTipRef.current = true;
-          } else {
-            // Roughly 1 in 6 chance to show a tip after the first request
-            const showTip = Math.random() < 1 / 6;
-            phraseList = showTip ? INFORMATIVE_TIPS : WITTY_LOADING_PHRASES;
-          }
-          const randomIndex = Math.floor(Math.random() * phraseList.length);
-          setCurrentLoadingPhrase(phraseList[randomIndex]);
-        }
-      };
-
-      // Select an initial random phrase
-      setRandomPhrase();
-
-      phraseIntervalRef.current = setInterval(() => {
-        // Select a new random phrase
-        setRandomPhrase();
-      }, PHRASE_CHANGE_INTERVAL_MS);
-    } else {
-      // Idle or other states, clear the phrase interval
-      // and reset to the first phrase for next active state.
-      if (phraseIntervalRef.current) {
-        clearInterval(phraseIntervalRef.current);
-        phraseIntervalRef.current = null;
-      }
-      setCurrentLoadingPhrase(loadingPhrases[0]);
+      return;
     }
 
+    if (!isActive) {
+      setCurrentLoadingPhrase(loadingPhrases[0]);
+      return;
+    }
+
+    const setRandomPhrase = () => {
+      if (customPhrases && customPhrases.length > 0) {
+        const randomIndex = Math.floor(Math.random() * customPhrases.length);
+        setCurrentLoadingPhrase(customPhrases[randomIndex]);
+      } else {
+        let phraseList;
+        // Show a tip on the first request after startup, then continue with 1/6 chance
+        if (!hasShownFirstRequestTipRef.current) {
+          // Show a tip during the first request
+          phraseList = INFORMATIVE_TIPS;
+          hasShownFirstRequestTipRef.current = true;
+        } else {
+          // Roughly 1 in 6 chance to show a tip after the first request
+          const showTip = Math.random() < 1 / 6;
+          phraseList = showTip ? INFORMATIVE_TIPS : WITTY_LOADING_PHRASES;
+        }
+        const randomIndex = Math.floor(Math.random() * phraseList.length);
+        setCurrentLoadingPhrase(phraseList[randomIndex]);
+      }
+    };
+
+    // Select an initial random phrase
+    setRandomPhrase();
+
+    phraseIntervalRef.current = setInterval(() => {
+      // Select a new random phrase
+      setRandomPhrase();
+    }, PHRASE_CHANGE_INTERVAL_MS);
+
     return () => {
       if (phraseIntervalRef.current) {
         clearInterval(phraseIntervalRef.current);
         phraseIntervalRef.current = null;
       }
     };
-  }, [isActive, isWaiting, customPhrases, loadingPhrases]);
+  }, [
+    isActive,
+    isWaiting,
+    isInteractiveShellWaiting,
+    customPhrases,
+    loadingPhrases,
+    showShellFocusHint,
+  ]);
 
   return currentLoadingPhrase;
 };

packages/cli/src/ui/hooks/useQuotaAndFallback.test.ts

@@ -27,6 +27,8 @@ import {
   RetryableQuotaError,
   PREVIEW_GEMINI_MODEL,
   ModelNotFoundError,
+  DEFAULT_GEMINI_MODEL,
+  DEFAULT_GEMINI_FLASH_MODEL,
 } from '@google/gemini-cli-core';
 import { useQuotaAndFallback } from './useQuotaAndFallback.js';
 import type { UseHistoryManagerReturn } from './useHistoryManager.js';
@@ -432,7 +434,7 @@ To disable Gemini 3, disable "Preview features" in /settings.`,
       await act(() => {
         promise = handler(
           PREVIEW_GEMINI_MODEL,
-          'gemini-flash',
+          DEFAULT_GEMINI_MODEL,
           new Error('preview model failed'),
         );
       });
@@ -447,7 +449,42 @@ To disable Gemini 3, disable "Preview features" in /settings.`,
       const lastCall = (mockHistoryManager.addItem as Mock).mock.calls[0][0];
       expect(lastCall.type).toBe(MessageType.INFO);
       expect(lastCall.text).toContain(
-        `Switched to fallback model gemini-flash. We will periodically check if ${PREVIEW_GEMINI_MODEL} is available again.`,
+        `Switched to fallback model gemini-2.5-pro. We will periodically check if ${PREVIEW_GEMINI_MODEL} is available again.`,
+      );
+    });
+
+    it('should show a special message when falling back from the preview model, but do not show periodical check message for flash model fallback', async () => {
+      const { result } = renderHook(() =>
+        useQuotaAndFallback({
+          config: mockConfig,
+          historyManager: mockHistoryManager,
+          userTier: UserTierId.FREE,
+          setModelSwitchedFromQuotaError: mockSetModelSwitchedFromQuotaError,
+        }),
+      );
+
+      const handler = setFallbackHandlerSpy.mock
+        .calls[0][0] as FallbackModelHandler;
+      let promise: Promise<FallbackIntent | null>;
+      await act(() => {
+        promise = handler(
+          PREVIEW_GEMINI_MODEL,
+          DEFAULT_GEMINI_FLASH_MODEL,
+          new Error('preview model failed'),
+        );
+      });
+
+      await act(() => {
+        result.current.handleProQuotaChoice('retry_always');
+      });
+
+      await promise!;
+
+      expect(mockHistoryManager.addItem).toHaveBeenCalledTimes(1);
+      const lastCall = (mockHistoryManager.addItem as Mock).mock.calls[0][0];
+      expect(lastCall.type).toBe(MessageType.INFO);
+      expect(lastCall.text).toContain(
+        `Switched to fallback model gemini-2.5-flash.`,
       );
     });
   });

packages/cli/src/ui/hooks/useQuotaAndFallback.ts

@@ -13,6 +13,7 @@ import {
   ModelNotFoundError,
   type UserTierId,
   PREVIEW_GEMINI_MODEL,
+  DEFAULT_GEMINI_MODEL,
 } from '@google/gemini-cli-core';
 import { useCallback, useEffect, useRef, useState } from 'react';
 import { type UseHistoryManagerReturn } from './useHistoryManager.js';
@@ -55,11 +56,16 @@ export function useQuotaAndFallback({
       let message: string;
       let isTerminalQuotaError = false;
       let isModelNotFoundError = false;
+      const usageLimitReachedModel =
+        failedModel === DEFAULT_GEMINI_MODEL ||
+        failedModel === PREVIEW_GEMINI_MODEL
+          ? 'all Pro models'
+          : failedModel;
       if (error instanceof TerminalQuotaError) {
         isTerminalQuotaError = true;
         // Common part of the message for both tiers
         const messageLines = [
-          `Usage limit reached for ${failedModel}.`,
+          `Usage limit reached for ${usageLimitReachedModel}.`,
           error.retryDelayMs ? getResetTimeMessage(error.retryDelayMs) : null,
           `/stats for usage details`,
           `/auth to switch to API key.`,
@@ -116,10 +122,13 @@ export function useQuotaAndFallback({
       if (choice === 'retry_always') {
         // If we were recovering from a Preview Model failure, show a specific message.
         if (proQuotaRequest.failedModel === PREVIEW_GEMINI_MODEL) {
+          const showPeriodicalCheckMessage =
+            !proQuotaRequest.isModelNotFoundError &&
+            proQuotaRequest.fallbackModel === DEFAULT_GEMINI_MODEL;
           historyManager.addItem(
             {
               type: MessageType.INFO,
-              text: `Switched to fallback model ${proQuotaRequest.fallbackModel}. ${!proQuotaRequest.isModelNotFoundError ? `We will periodically check if ${PREVIEW_GEMINI_MODEL} is available again.` : ''}`,
+              text: `Switched to fallback model ${proQuotaRequest.fallbackModel}. ${showPeriodicalCheckMessage ? `We will periodically check if ${PREVIEW_GEMINI_MODEL} is available again.` : ''}`,
             },
             Date.now(),
           );

packages/cli/src/ui/hooks/useReactToolScheduler.ts

@@ -74,10 +74,12 @@ export function useReactToolScheduler(
   MarkToolsAsSubmittedFn,
   React.Dispatch<React.SetStateAction<TrackedToolCall[]>>,
   CancelAllFn,
+  number,
 ] {
   const [toolCallsForDisplay, setToolCallsForDisplay] = useState<
     TrackedToolCall[]
   >([]);
+  const [lastToolOutputTime, setLastToolOutputTime] = useState<number>(0);
 
   // Store callbacks in refs to keep them up-to-date without causing re-renders.
   const onCompleteRef = useRef(onComplete);
@@ -93,6 +95,7 @@ export function useReactToolScheduler(
 
   const outputUpdateHandler: OutputUpdateHandler = useCallback(
     (toolCallId, outputChunk) => {
+      setLastToolOutputTime(Date.now());
       setToolCallsForDisplay((prevCalls) =>
         prevCalls.map((tc) => {
           if (tc.request.callId === toolCallId && tc.status === 'executing') {
@@ -208,6 +211,7 @@ export function useReactToolScheduler(
     markToolsAsSubmitted,
     setToolCallsForDisplay,
     cancelAllToolCalls,
+    lastToolOutputTime,
   ];
 }
 

packages/cli/src/utils/persistentState.ts

@@ -11,7 +11,7 @@ import * as path from 'node:path';
 const STATE_FILENAME = 'state.json';
 
 interface PersistentStateData {
-  defaultBannerShownCount?: number;
+  defaultBannerShownCount?: Record<string, number>;
   // Add other persistent state keys here as needed
 }
 

packages/core/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@google/gemini-cli-core",
-  "version": "0.18.0-nightly.20251120.2231497b1",
+  "version": "0.18.0",
   "description": "Gemini CLI Core",
   "repository": {
     "type": "git",

packages/core/src/fallback/handler.test.ts

@@ -25,6 +25,10 @@ import {
 import { logFlashFallback } from '../telemetry/index.js';
 import type { FallbackModelHandler } from './types.js';
 import { ModelNotFoundError } from '../utils/httpErrors.js';
+import {
+  RetryableQuotaError,
+  TerminalQuotaError,
+} from '../utils/googleQuotaErrors.js';
 
 // Mock the telemetry logger and event class
 vi.mock('../telemetry/index.js', () => ({
@@ -104,7 +108,7 @@ describe('handleFallback', () => {
     expect(result).toBeNull();
   });
 
-  describe('when handler returns "retry"', () => {
+  describe('when handler returns "retry_always"', () => {
     it('should activate fallback mode, log telemetry, and return true', async () => {
       mockHandler.mockResolvedValue('retry_always');
 
@@ -212,65 +216,175 @@ describe('handleFallback', () => {
   describe('Preview Model Fallback Logic', () => {
     const previewModel = PREVIEW_GEMINI_MODEL;
 
-    it('should always set Preview Model bypass mode on failure', async () => {
-      await handleFallback(mockConfig, previewModel, AUTH_OAUTH);
+    it('should only set Preview Model bypass mode on retryable quota failure', async () => {
+      const mockGoogleApiError = {
+        code: 429,
+        message: 'mock error',
+        details: [],
+      };
+      const retryableQuotaError = new RetryableQuotaError(
+        'Capacity error',
+        mockGoogleApiError,
+        5,
+      );
+      await handleFallback(
+        mockConfig,
+        previewModel,
+        AUTH_OAUTH,
+        retryableQuotaError,
+      );
       expect(mockConfig.setPreviewModelBypassMode).toHaveBeenCalledWith(true);
     });
 
-    it('should silently retry if Preview Model fallback mode is already active', async () => {
-      vi.spyOn(mockConfig, 'isPreviewModelFallbackMode').mockReturnValue(true);
+    it('should not set Preview Model bypass mode on non-retryable quota failure', async () => {
+      const mockGoogleApiError = {
+        code: 429,
+        message: 'mock error',
+        details: [],
+      };
+      const terminalQuotaError = new TerminalQuotaError(
+        'quota error',
+        mockGoogleApiError,
+        5,
+      );
+      await handleFallback(
+        mockConfig,
+        previewModel,
+        AUTH_OAUTH,
+        terminalQuotaError,
+      );
 
-      const result = await handleFallback(mockConfig, previewModel, AUTH_OAUTH);
+      expect(mockConfig.setPreviewModelBypassMode).not.toHaveBeenCalled();
+    });
+
+    it('should silently retry if Preview Model fallback mode is already active and error is retryable error', async () => {
+      vi.spyOn(mockConfig, 'isPreviewModelFallbackMode').mockReturnValue(true);
+      const mockGoogleApiError = {
+        code: 429,
+        message: 'mock error',
+        details: [],
+      };
+      const retryableQuotaError = new RetryableQuotaError(
+        'Capacity error',
+        mockGoogleApiError,
+        5,
+      );
+      const result = await handleFallback(
+        mockConfig,
+        previewModel,
+        AUTH_OAUTH,
+        retryableQuotaError,
+      );
 
       expect(result).toBe(true);
       expect(mockHandler).not.toHaveBeenCalled();
     });
 
-    it('should activate Preview Model fallback mode when handler returns "retry_always"', async () => {
+    it('should activate Preview Model fallback mode when handler returns "retry_always" and is RetryableQuotaError', async () => {
       mockHandler.mockResolvedValue('retry_always');
-
-      const result = await handleFallback(mockConfig, previewModel, AUTH_OAUTH);
+      const mockGoogleApiError = {
+        code: 429,
+        message: 'mock error',
+        details: [],
+      };
+      const retryableQuotaError = new RetryableQuotaError(
+        'Capacity error',
+        mockGoogleApiError,
+        5,
+      );
+      const result = await handleFallback(
+        mockConfig,
+        previewModel,
+        AUTH_OAUTH,
+        retryableQuotaError,
+      );
 
       expect(result).toBe(true);
       expect(mockConfig.setPreviewModelBypassMode).toHaveBeenCalledWith(true);
       expect(mockConfig.setPreviewModelFallbackMode).toHaveBeenCalledWith(true);
     });
 
+    it('should activate regular fallback when handler returns "retry_always" and is TerminalQuotaError', async () => {
+      mockHandler.mockResolvedValue('retry_always');
+      const mockGoogleApiError = {
+        code: 503,
+        message: 'mock error',
+        details: [],
+      };
+      const terminalError = new TerminalQuotaError(
+        'Quota error',
+        mockGoogleApiError,
+        5,
+      );
+      const result = await handleFallback(
+        mockConfig,
+        previewModel,
+        AUTH_OAUTH,
+        terminalError,
+      );
+
+      expect(result).toBe(true);
+      expect(mockConfig.setPreviewModelFallbackMode).not.toBeCalled();
+      expect(mockConfig.setFallbackMode).toHaveBeenCalledWith(true);
+    });
+
     it('should NOT set fallback mode if user chooses "retry_once"', async () => {
+      const mockGoogleApiError = {
+        code: 429,
+        message: 'mock error',
+        details: [],
+      };
+      const terminalQuotaError = new TerminalQuotaError(
+        'quota error',
+        mockGoogleApiError,
+        5,
+      );
       mockHandler.mockResolvedValue('retry_once');
 
       const result = await handleFallback(
         mockConfig,
         PREVIEW_GEMINI_MODEL,
         AuthType.LOGIN_WITH_GOOGLE,
-        new Error('Capacity'),
+        terminalQuotaError,
       );
 
       expect(result).toBe(true);
-      expect(mockConfig.setPreviewModelBypassMode).toHaveBeenCalledWith(true);
+      expect(mockConfig.setPreviewModelBypassMode).not.toHaveBeenCalled();
       expect(mockConfig.setPreviewModelFallbackMode).not.toHaveBeenCalled();
+      expect(mockConfig.setFallbackMode).not.toHaveBeenCalled();
     });
 
-    it('should set fallback mode if user chooses "retry_always"', async () => {
-      mockHandler.mockResolvedValue('retry_always');
-
-      const result = await handleFallback(
-        mockConfig,
-        PREVIEW_GEMINI_MODEL,
-        AuthType.LOGIN_WITH_GOOGLE,
-        new Error('Capacity'),
-      );
-
-      expect(result).toBe(true);
-      expect(mockConfig.setPreviewModelBypassMode).toHaveBeenCalledWith(true);
-      expect(mockConfig.setPreviewModelFallbackMode).toHaveBeenCalledWith(true);
-    });
-    it('should pass DEFAULT_GEMINI_MODEL as fallback when Preview Model fails', async () => {
+    it('should pass DEFAULT_GEMINI_MODEL as fallback when Preview Model fails with Retryable Error', async () => {
       const mockFallbackHandler = vi.fn().mockResolvedValue('stop');
       vi.mocked(mockConfig.fallbackModelHandler!).mockImplementation(
         mockFallbackHandler,
       );
+      const mockGoogleApiError = {
+        code: 429,
+        message: 'mock error',
+        details: [],
+      };
+      const retryableQuotaError = new RetryableQuotaError(
+        'Capacity error',
+        mockGoogleApiError,
+        5,
+      );
 
+      await handleFallback(
+        mockConfig,
+        PREVIEW_GEMINI_MODEL,
+        AuthType.LOGIN_WITH_GOOGLE,
+        retryableQuotaError,
+      );
+
+      expect(mockConfig.fallbackModelHandler).toHaveBeenCalledWith(
+        PREVIEW_GEMINI_MODEL,
+        DEFAULT_GEMINI_MODEL,
+        retryableQuotaError,
+      );
+    });
+
+    it('should pass DEFAULT_GEMINI_MODEL as fallback when Preview Model fails with other error', async () => {
       await handleFallback(
         mockConfig,
         PREVIEW_GEMINI_MODEL,
@@ -283,6 +397,31 @@ describe('handleFallback', () => {
         undefined,
       );
     });
+
+    it('should pass DEFAULT_GEMINI_FLASH_MODEL as fallback when Preview Model fails with other error', async () => {
+      const mockGoogleApiError = {
+        code: 429,
+        message: 'mock error',
+        details: [],
+      };
+      const terminalQuotaError = new TerminalQuotaError(
+        'quota error',
+        mockGoogleApiError,
+        5,
+      );
+      await handleFallback(
+        mockConfig,
+        PREVIEW_GEMINI_MODEL,
+        AuthType.LOGIN_WITH_GOOGLE,
+        terminalQuotaError,
+      );
+
+      expect(mockConfig.fallbackModelHandler).toHaveBeenCalledWith(
+        PREVIEW_GEMINI_MODEL,
+        DEFAULT_GEMINI_FLASH_MODEL,
+        terminalQuotaError,
+      );
+    });
   });
 
   it('should return null if ModelNotFoundError occurs for a non-preview model', async () => {

packages/core/src/fallback/handler.ts

@@ -17,6 +17,7 @@ import { openBrowserSecurely } from '../utils/secure-browser-launcher.js';
 import { debugLogger } from '../utils/debugLogger.js';
 import { getErrorMessage } from '../utils/errors.js';
 import { ModelNotFoundError } from '../utils/httpErrors.js';
+import { TerminalQuotaError } from '../utils/googleQuotaErrors.js';
 
 const UPGRADE_URL_PAGE = 'https://goo.gle/set-up-gemini-code-assist';
 
@@ -36,10 +37,12 @@ export async function handleFallback(
   ) {
     return null;
   }
-
+  const shouldActivatePreviewFallback =
+    failedModel === PREVIEW_GEMINI_MODEL &&
+    !(error instanceof TerminalQuotaError);
   // Preview Model Specific Logic
-  if (failedModel === PREVIEW_GEMINI_MODEL) {
-    // Always set bypass mode for the immediate retry.
+  if (shouldActivatePreviewFallback) {
+    // Always set bypass mode for the immediate retry, for non-TerminalQuotaErrors.
     // This ensures the next attempt uses 2.5 Pro.
     config.setPreviewModelBypassMode(true);
 
@@ -50,10 +53,9 @@ export async function handleFallback(
     }
   }
 
-  const fallbackModel =
-    failedModel === PREVIEW_GEMINI_MODEL
-      ? DEFAULT_GEMINI_MODEL
-      : DEFAULT_GEMINI_FLASH_MODEL;
+  const fallbackModel = shouldActivatePreviewFallback
+    ? DEFAULT_GEMINI_MODEL
+    : DEFAULT_GEMINI_FLASH_MODEL;
 
   // Consult UI Handler for Intent
   const fallbackModelHandler = config.fallbackModelHandler;
@@ -70,7 +72,9 @@ export async function handleFallback(
     // Process Intent and Update State
     switch (intent) {
       case 'retry_always':
-        if (failedModel === PREVIEW_GEMINI_MODEL) {
+        // If the error is non-retryable, e.g. TerminalQuota Error, trigger a regular fallback to flash.
+        // For all other errors, activate previewModel fallback.
+        if (shouldActivatePreviewFallback) {
           activatePreviewModelFallbackMode(config);
         } else {
           activateFallbackMode(config, authType);

packages/test-utils/package.json

@@ -1,6 +1,6 @@
 {
   "name": "@google/gemini-cli-test-utils",
-  "version": "0.18.0-nightly.20251120.2231497b1",
+  "version": "0.18.0",
   "private": true,
   "main": "src/index.ts",
   "license": "Apache-2.0",

packages/vscode-ide-companion/package.json

@@ -2,7 +2,7 @@
   "name": "gemini-cli-vscode-ide-companion",
   "displayName": "Gemini CLI Companion",
   "description": "Enable Gemini CLI with direct access to your IDE workspace.",
-  "version": "0.18.0-nightly.20251120.2231497b1",
+  "version": "0.18.0",
   "publisher": "google",
   "icon": "assets/icon.png",
   "repository": {

schemas/settings.schema.json

@@ -292,8 +292,8 @@
         "useAlternateBuffer": {
           "title": "Use Alternate Screen Buffer",
           "description": "Use an alternate screen buffer for the UI, preserving shell history.",
-          "markdownDescription": "Use an alternate screen buffer for the UI, preserving shell history.\n\n- Category: `UI`\n- Requires restart: `yes`\n- Default: `true`",
-          "default": true,
+          "markdownDescription": "Use an alternate screen buffer for the UI, preserving shell history.\n\n- Category: `UI`\n- Requires restart: `yes`\n- Default: `false`",
+          "default": false,
           "type": "boolean"
         },
         "incrementalRendering": {