diff --git a/packages/cli/src/ui/utils/MarkdownDisplay.test.tsx b/packages/cli/src/ui/utils/MarkdownDisplay.test.tsx
index ed68adb9c5d..f7f7dac54f2 100644
--- a/packages/cli/src/ui/utils/MarkdownDisplay.test.tsx
+++ b/packages/cli/src/ui/utils/MarkdownDisplay.test.tsx
@@ -87,6 +87,45 @@ describe('<MarkdownDisplay />', () => {
       unmount();
     });
 
+    it('caps the height of pending plain text to the available height', async () => {
+      const text = Array.from(
+        { length: 30 },
+        (_, i) => `${i + 1}. tip ${i + 1}`,
+      ).join(eol);
+      const { lastFrame, unmount } = await renderWithProviders(
+        <MarkdownDisplay
+          {...baseProps}
+          text={text}
+          isPending={true}
+          availableTerminalHeight={10}
+        />,
+      );
+      const frame = lastFrame() ?? '';
+      expect(frame.trimEnd().split('\n').length).toBeLessThanOrEqual(10);
+      expect(frame).toContain('tip 30');
+      expect(frame).not.toContain('tip 1\n');
+      expect(frame).toContain('lines hidden');
+      unmount();
+    });
+
+    it('does not cap the height of completed plain text', async () => {
+      const text = Array.from(
+        { length: 30 },
+        (_, i) => `${i + 1}. tip ${i + 1}`,
+      ).join(eol);
+      const { lastFrame, unmount } = await renderWithProviders(
+        <MarkdownDisplay
+          {...baseProps}
+          text={text}
+          isPending={false}
+          availableTerminalHeight={10}
+        />,
+      );
+      expect(lastFrame()).toContain('tip 1');
+      expect(lastFrame()).toContain('tip 30');
+      unmount();
+    });
+
     it('renders unordered lists with different markers', async () => {
       const text = `
 - item A
diff --git a/packages/cli/src/ui/utils/MarkdownDisplay.tsx b/packages/cli/src/ui/utils/MarkdownDisplay.tsx
index b3e88d9a012..d19cee8e845 100644
--- a/packages/cli/src/ui/utils/MarkdownDisplay.tsx
+++ b/packages/cli/src/ui/utils/MarkdownDisplay.tsx
@@ -12,6 +12,7 @@ import { TableRenderer } from './TableRenderer.js';
 import { RenderInline } from './InlineMarkdownRenderer.js';
 import { useSettings } from '../contexts/SettingsContext.js';
 import { useAlternateBuffer } from '../hooks/useAlternateBuffer.js';
+import { MaxSizedBox } from '../components/shared/MaxSizedBox.js';
 
 interface MarkdownDisplayProps {
   text: string;
@@ -311,6 +312,25 @@ const MarkdownDisplayInternal: React.FC<MarkdownDisplayProps> = ({
     );
   }
 
+  // When not in alternate buffer mode a pending message that is taller than the
+  // terminal forces Ink to clear and redraw the whole screen on every update.
+  // Cap the height so streaming text keeps the frame shorter than the terminal.
+  if (
+    !isAlternateBuffer &&
+    isPending &&
+    availableTerminalHeight !== undefined
+  ) {
+    return (
+      <MaxSizedBox
+        maxHeight={availableTerminalHeight}
+        maxWidth={terminalWidth}
+        overflowDirection="top"
+      >
+        {contentBlocks}
+      </MaxSizedBox>
+    );
+  }
+
   return <>{contentBlocks}</>;
 };