diff --git a/packages/cli/src/ui/utils/InlineMarkdownRenderer.tsx b/packages/cli/src/ui/utils/InlineMarkdownRenderer.tsx
index 19d4b3cac89..1e5315a2646 100644
--- a/packages/cli/src/ui/utils/InlineMarkdownRenderer.tsx
+++ b/packages/cli/src/ui/utils/InlineMarkdownRenderer.tsx
@@ -18,8 +18,8 @@ const RenderInlineInternal: React.FC<RenderInlineProps> = ({
   text: rawText,
   defaultColor,
 }) => {
-  const text = stripUnsafeCharacters(rawText);
-  const ansiText = parseMarkdownToANSI(text, defaultColor);
+  const sanitizedText = stripUnsafeCharacters(rawText);
+  const ansiText = parseMarkdownToANSI(sanitizedText, defaultColor);
 
   return <Text>{ansiText}</Text>;
 };
diff --git a/packages/cli/src/ui/utils/markdownParsingUtils.test.ts b/packages/cli/src/ui/utils/markdownParsingUtils.test.ts
index 5728f886dc8..270044bf177 100644
--- a/packages/cli/src/ui/utils/markdownParsingUtils.test.ts
+++ b/packages/cli/src/ui/utils/markdownParsingUtils.test.ts
@@ -142,7 +142,7 @@ describe('parsingUtils', () => {
       const input = 'Visit https://google.com now';
       const output = parseMarkdownToANSI(input);
       expect(output).toBe(
-        `${primary('Visit ')}${link('https://google.com')}${primary(' now')}`,
+        `${primary('Visit ')}\x1b]8;;https://google.com\x1b\\${link('https://google.com')}\x1b]8;;\x1b\\${primary(' now')}`,
       );
     });
 
@@ -269,5 +269,51 @@ describe('parsingUtils', () => {
         expect(output).toBe(primary('It costs $5.99 total'));
       });
     });
+
+    describe('OSC 8 terminal hyperlinks for bare URLs', () => {
+      const OSC = '\x1b]8;;';
+      const ST = '\x1b\\';
+
+      it('wraps bare https URLs in an OSC 8 hyperlink sequence', () => {
+        const url =
+          'https://accounts.google.com/o/oauth2/v2/auth?response_type=code&client_id=x';
+        const result = parseMarkdownToANSI(url);
+        // Must begin with the OSC 8 opening sequence containing the full URL
+        expect(result).toContain(`${OSC}${url}${ST}`);
+        // Must close with the OSC 8 terminator
+        expect(result).toContain(`${OSC}${ST}`);
+        // The full URL string must appear as visible text
+        expect(result).toContain(url);
+      });
+
+      it('does not drop OAuth query parameters', () => {
+        const url =
+          'https://example.com/auth?redirect_uri=http%3A%2F%2F127.0.0.1%3A1234%2Foauth2callback&response_type=code';
+        const result = parseMarkdownToANSI(url);
+        expect(result).toContain('response_type=code');
+        expect(result).toContain('redirect_uri=http%3A%2F%2F127.0.0.1');
+      });
+
+      it('updates the existing bare-URL test to expect OSC 8 wrapping', () => {
+        const url = 'https://google.com';
+        const result = parseMarkdownToANSI(`Visit ${url} now`);
+        expect(result).toContain(`${OSC}${url}${ST}`);
+      });
+
+      it('does not emit OSC 8 when chalk.level is 0 (NO_COLOR / non-TTY)', () => {
+        const originalLevel = chalk.level;
+        try {
+          chalk.level = 0;
+          const url = 'https://example.com/path?q=1';
+          const result = parseMarkdownToANSI(url);
+          // Must not contain the OSC 8 opening sequence
+          expect(result).not.toContain('\x1b]8;;');
+          // The URL text itself must still be present
+          expect(result).toContain(url);
+        } finally {
+          chalk.level = originalLevel;
+        }
+      });
+    });
   });
 });
diff --git a/packages/cli/src/ui/utils/markdownParsingUtils.ts b/packages/cli/src/ui/utils/markdownParsingUtils.ts
index 841809f08c7..dd3b63952d5 100644
--- a/packages/cli/src/ui/utils/markdownParsingUtils.ts
+++ b/packages/cli/src/ui/utils/markdownParsingUtils.ts
@@ -236,7 +236,16 @@ export const parseMarkdownToANSI = (
           ),
         );
       } else if (fullMatch.match(/^https?:\/\//)) {
-        styledPart = ansiColorize(fullMatch, theme.text.link);
+        const colored = ansiColorize(fullMatch, theme.text.link);
+        // Wrap in an OSC 8 terminal hyperlink so the full URL remains the
+        // clickable target even when the terminal visually word-wraps the text.
+        // OSC 8 is an escape sequence: only emit it when chalk is outputting
+        // ANSI codes. chalk.level === 0 when NO_COLOR is set, stdout is
+        // non-TTY, or FORCE_COLOR/TERM=dumb suppresses output.
+        styledPart =
+          chalk.level > 0
+            ? `\x1b]8;;${fullMatch}\x1b\\${colored}\x1b]8;;\x1b\\`
+            : colored;
       }
     } catch (e) {
       debugLogger.warn('Error parsing inline markdown part:', fullMatch, e);
diff --git a/packages/core/src/code_assist/oauth2.ts b/packages/core/src/code_assist/oauth2.ts
index 01b0d0f04c8..671733ffad5 100644
--- a/packages/core/src/code_assist/oauth2.ts
+++ b/packages/core/src/code_assist/oauth2.ts
@@ -451,9 +451,11 @@ async function authWithUserCode(client: OAuth2Client): Promise<boolean> {
       code_challenge: codeVerifier.codeChallenge,
       state,
     });
+    const osc8Link = (url: string) =>
+      `\x1b]8;;${url}\x1b\\${url}\x1b]8;;\x1b\\`;
     writeToStdout(
       'Please visit the following URL to authorize the application:\n\n' +
-        authUrl +
+        osc8Link(authUrl) +
         '\n\n',
     );