feat: stream worktree setup progress and terminal subscriptions

2026-07-29 12:01:31 +00:00 · 2026-02-16 08:09:27 +07:00
parent b980abb7af
commit 037a6a15a4
29 changed files with 1449 additions and 102 deletions
--- a/packages/app/src/components/headers/back-header.tsx
+++ b/packages/app/src/components/headers/back-header.tsx
@@ -11,7 +11,11 @@ interface BackHeaderProps {
  onBack?: () => void;
 }

-export function BackHeader({ title, rightContent, onBack }: BackHeaderProps) {
+export function BackHeader({
+  title,
+  rightContent,
+  onBack,
+}: BackHeaderProps) {
  const { theme } = useUnistyles();

  return (
--- a/packages/app/src/components/headers/menu-header.tsx
+++ b/packages/app/src/components/headers/menu-header.tsx
@@ -1,7 +1,7 @@
 import type { ReactNode } from "react";
-import { Text } from "react-native";
+import { Text, View, type StyleProp, type ViewStyle } from "react-native";
 import { StyleSheet, UnistylesRuntime, useUnistyles } from "react-native-unistyles";
-import { Menu, PanelLeft } from "lucide-react-native";
+import { PanelLeft } from "lucide-react-native";
 import { ScreenHeader } from "./screen-header";
 import { HeaderToggleButton } from "./header-toggle-button";
 import { usePanelStore } from "@/stores/panel-store";
@@ -12,7 +12,39 @@ interface MenuHeaderProps {
  rightContent?: ReactNode;
 }

-export function MenuHeader({ title, rightContent }: MenuHeaderProps) {
+interface SidebarMenuToggleProps {
+  style?: StyleProp<ViewStyle>;
+  tooltipSide?: "left" | "right" | "top" | "bottom";
+  testID?: string;
+  nativeID?: string;
+}
+
+const MOBILE_MENU_LINE_WIDTH = 16;
+const MOBILE_MENU_LINE_SHORT_WIDTH = 8;
+const MOBILE_MENU_LINE_HEIGHT = 2;
+
+function MobileMenuIcon({ color }: { color: string }) {
+  return (
+    <View style={styles.mobileMenuIcon} pointerEvents="none">
+      <View style={[styles.mobileMenuLine, { backgroundColor: color }]} />
+      <View style={[styles.mobileMenuLine, { backgroundColor: color }]} />
+      <View
+        style={[
+          styles.mobileMenuLine,
+          styles.mobileMenuLineShort,
+          { backgroundColor: color },
+        ]}
+      />
+    </View>
+  );
+}
+
+export function SidebarMenuToggle({
+  style,
+  tooltipSide = "right",
+  testID = "menu-button",
+  nativeID = "menu-button",
+}: SidebarMenuToggleProps = {}) {
  const { theme } = useUnistyles();
  const isMobile =
    UnistylesRuntime.breakpoint === "xs" || UnistylesRuntime.breakpoint === "sm";
@@ -22,29 +54,42 @@ export function MenuHeader({ title, rightContent }: MenuHeaderProps) {
  const toggleShortcutKeys = getShortcutOs() === "mac" ? ["mod", "B"] : ["mod", "."];

  const isOpen = isMobile ? mobileView === "agent-list" : desktopAgentListOpen;
-  const MenuIcon = isMobile ? Menu : PanelLeft;
  const menuIconColor = !isMobile && isOpen
    ? theme.colors.foreground
    : theme.colors.foregroundMuted;

+  return (
+    <HeaderToggleButton
+      onPress={toggleAgentList}
+      tooltipLabel="Toggle sidebar"
+      tooltipKeys={toggleShortcutKeys}
+      tooltipSide={tooltipSide}
+      testID={testID}
+      nativeID={nativeID}
+      style={style}
+      accessible
+      accessibilityRole="button"
+      accessibilityLabel={isOpen ? "Close menu" : "Open menu"}
+      accessibilityState={{ expanded: isOpen }}
+    >
+      {isMobile ? (
+        <MobileMenuIcon color={menuIconColor} />
+      ) : (
+        <PanelLeft size={16} color={menuIconColor} />
+      )}
+    </HeaderToggleButton>
+  );
+}
+
+export function MenuHeader({
+  title,
+  rightContent,
+}: MenuHeaderProps) {
  return (
    <ScreenHeader
      left={
        <>
-          <HeaderToggleButton
-            onPress={toggleAgentList}
-            tooltipLabel="Toggle sidebar"
-            tooltipKeys={toggleShortcutKeys}
-            tooltipSide="right"
-            testID="menu-button"
-            nativeID="menu-button"
-            accessible
-            accessibilityRole="button"
-            accessibilityLabel={isOpen ? "Close menu" : "Open menu"}
-            accessibilityState={{ expanded: isOpen }}
-          >
-            <MenuIcon size={isMobile ? 20 : 16} color={menuIconColor} />
-          </HeaderToggleButton>
+          <SidebarMenuToggle />
          {title && (
            <Text style={styles.title} numberOfLines={1}>
              {title}
@@ -71,4 +116,18 @@ const styles = StyleSheet.create((theme) => ({
    },
    color: theme.colors.foreground,
  },
+  mobileMenuIcon: {
+    width: MOBILE_MENU_LINE_WIDTH,
+    height: 12,
+    justifyContent: "space-between",
+    alignItems: "flex-start",
+  },
+  mobileMenuLine: {
+    width: MOBILE_MENU_LINE_WIDTH,
+    height: MOBILE_MENU_LINE_HEIGHT,
+    borderRadius: theme.borderRadius.full,
+  },
+  mobileMenuLineShort: {
+    width: MOBILE_MENU_LINE_SHORT_WIDTH,
+  },
 }));
--- a/packages/app/src/components/headers/screen-header.tsx
+++ b/packages/app/src/components/headers/screen-header.tsx
@@ -16,7 +16,12 @@ interface ScreenHeaderProps {
 * Shared frame for the home/back headers so we only maintain padding, border,
 * and safe-area logic in one place.
 */
-export function ScreenHeader({ left, right, leftStyle, rightStyle }: ScreenHeaderProps) {
+export function ScreenHeader({
+  left,
+  right,
+  leftStyle,
+  rightStyle,
+}: ScreenHeaderProps) {
  const insets = useSafeAreaInsets();
  const isMobile = UnistylesRuntime.breakpoint === "xs" || UnistylesRuntime.breakpoint === "sm";
  // Only add extra padding on mobile for better touch targets; on desktop, only use safe area insets
--- a/packages/app/src/components/sidebar-agent-list.tsx
+++ b/packages/app/src/components/sidebar-agent-list.tsx
@@ -1089,8 +1089,7 @@ const styles = StyleSheet.create((theme) => ({
    color: theme.colors.foreground,
    opacity: 0.78,
    fontSize: theme.fontSize.xs,
-    flexShrink: 1,
-    minWidth: 0,
+    flexShrink: 0,
  },
  agentMetaBranchBadge: {
    borderRadius: theme.borderRadius.full,
@@ -1098,7 +1097,8 @@ const styles = StyleSheet.create((theme) => ({
    borderColor: theme.colors.border,
    paddingHorizontal: theme.spacing[1],
    paddingVertical: 1,
-    flexShrink: 0,
+    flexShrink: 1,
+    minWidth: 0,
  },
  agentMetaBranchBadgeSelected: {
    borderColor: theme.colors.borderAccent,
@@ -1107,6 +1107,8 @@ const styles = StyleSheet.create((theme) => ({
    color: theme.colors.foreground,
    opacity: 0.76,
    fontSize: theme.fontSize.xs,
+    flexShrink: 1,
+    minWidth: 0,
  },
  selectionBar: {
    position: "absolute",
--- a/packages/app/src/components/terminal-pane.tsx
+++ b/packages/app/src/components/terminal-pane.tsx
@@ -290,6 +290,35 @@ export function TerminalPane({ serverId, cwd }: TerminalPaneProps) {
    });
  }, [client, cwd, isConnected, queryClient, serverId]);

+  useEffect(() => {
+    if (!client || !isConnected || !cwd.startsWith("/")) {
+      return;
+    }
+
+    const unsubscribe = client.on("terminals_changed", (message) => {
+      if (message.type !== "terminals_changed") {
+        return;
+      }
+      if (message.payload.cwd !== cwd) {
+        return;
+      }
+      void queryClient.invalidateQueries({
+        queryKey: ["terminals", serverId, cwd],
+      });
+      void queryClient.refetchQueries({
+        queryKey: ["terminals", serverId, cwd],
+        type: "active",
+      });
+    });
+
+    client.subscribeTerminals({ cwd });
+
+    return () => {
+      unsubscribe();
+      client.unsubscribeTerminals({ cwd });
+    };
+  }, [client, cwd, isConnected, queryClient, serverId]);
+
  const createTerminalMutation = useMutation({
    mutationFn: async () => {
      if (!client) {
--- a/packages/app/src/components/tool-call-details.tsx
+++ b/packages/app/src/components/tool-call-details.tsx
@@ -89,6 +89,43 @@ export function ToolCallDetailsContent({
        </View>
      </View>
    );
+  } else if (detail?.type === "worktree_setup") {
+    const setupLog = detail.log.replace(/^\n+/, "");
+    const hasLog = setupLog.length > 0;
+    sections.push(
+      <View
+        key="worktree-setup"
+        style={[styles.section, shouldFill && styles.fillHeight]}
+      >
+        <View style={[codeBlockStyle, shouldFill && styles.fillHeight]}>
+          <ScrollView
+            style={[
+              styles.codeVerticalScroll,
+              resolvedMaxHeight !== undefined && { maxHeight: resolvedMaxHeight },
+              shouldFill && styles.fillHeight,
+            ]}
+            contentContainerStyle={styles.codeVerticalContent}
+            nestedScrollEnabled
+            showsVerticalScrollIndicator
+          >
+            <ScrollView
+              horizontal
+              nestedScrollEnabled
+              showsHorizontalScrollIndicator
+              contentContainerStyle={styles.codeHorizontalContent}
+            >
+              <View style={styles.codeLine}>
+                <Text selectable style={styles.scrollText}>
+                  {hasLog
+                    ? setupLog
+                    : `Preparing worktree ${detail.branchName} at ${detail.worktreePath}`}
+                </Text>
+              </View>
+            </ScrollView>
+          </ScrollView>
+        </View>
+      </View>
+    );
  } else if (detail?.type === "edit") {
    sections.push(
      <View
--- a/packages/app/src/screens/agent/draft-agent-screen.tsx
+++ b/packages/app/src/screens/agent/draft-agent-screen.tsx
@@ -14,8 +14,8 @@ import { StyleSheet, UnistylesRuntime, useUnistyles } from "react-native-unistyl
 import { useSafeAreaInsets } from "react-native-safe-area-context";
 import { useReanimatedKeyboardAnimation } from "react-native-keyboard-controller";
 import Animated, { useAnimatedStyle, useSharedValue } from "react-native-reanimated";
-import { Folder, GitBranch, Menu, PanelLeft } from "lucide-react-native";
-import { HeaderToggleButton } from "@/components/headers/header-toggle-button";
+import { Folder, GitBranch } from "lucide-react-native";
+import { SidebarMenuToggle } from "@/components/headers/menu-header";
 import { AgentInputArea } from "@/components/agent-input-area";
 import { AgentStreamView } from "@/components/agent-stream-view";
 import { AgentConfigRow, FormSelectTrigger } from "@/components/agent-form/agent-form-dropdowns";
@@ -31,7 +31,6 @@ import { useDaemonConnections } from "@/contexts/daemon-connections-context";
 import { useDaemonRegistry } from "@/contexts/daemon-registry-context";
 import { buildBranchComboOptions, normalizeBranchOptionName } from "@/utils/branch-suggestions";
 import { shortenPath } from "@/utils/shorten-path";
-import { usePanelStore } from "@/stores/panel-store";
 import { useSessionStore } from "@/stores/session-store";
 import { useCreateFlowStore } from "@/stores/create-flow-store";
 import { MAX_CONTENT_WIDTH } from "@/constants/layout";
@@ -125,9 +124,6 @@ export function DraftAgentScreen({
  const insets = useSafeAreaInsets();
  const { connectionStates } = useDaemonConnections();
  const { daemons } = useDaemonRegistry();
-  const mobileView = usePanelStore((state) => state.mobileView);
-  const desktopAgentListOpen = usePanelStore((state) => state.desktop.agentListOpen);
-  const toggleAgentList = usePanelStore((state) => state.toggleAgentList);
  const params = useLocalSearchParams<DraftAgentParams>();

  const { height: keyboardHeight } = useReanimatedKeyboardAnimation();
@@ -226,11 +222,6 @@ export function DraftAgentScreen({
    : undefined;
  const isMobile =
    UnistylesRuntime.breakpoint === "xs" || UnistylesRuntime.breakpoint === "sm";
-  const isSidebarOpen = isMobile ? mobileView === "agent-list" : desktopAgentListOpen;
-  const SidebarIcon = isMobile ? Menu : PanelLeft;
-  const sidebarIconColor = !isMobile && isSidebarOpen
-    ? theme.colors.foreground
-    : theme.colors.foregroundMuted;

  const [worktreeMode, setWorktreeMode] = useState<"none" | "create" | "attach">("none");
  const [baseBranch, setBaseBranch] = useState("");
@@ -977,20 +968,7 @@ export function DraftAgentScreen({
              isMobile ? { paddingTop: insets.top + theme.spacing[2] } : null,
            ]}
          >
-            <HeaderToggleButton
-              onPress={toggleAgentList}
-              tooltipLabel="Toggle sidebar"
-              tooltipKeys={["mod", "B"]}
-              tooltipSide="right"
-              testID="menu-button"
-              nativeID="menu-button"
-              accessible
-              accessibilityRole="button"
-              accessibilityLabel={isSidebarOpen ? "Close menu" : "Open menu"}
-              accessibilityState={{ expanded: isSidebarOpen }}
-            >
-              <SidebarIcon size={isMobile ? 20 : 16} color={sidebarIconColor} />
-            </HeaderToggleButton>
+            <SidebarMenuToggle />
          </View>

        <Animated.View style={[styles.contentContainer, animatedKeyboardStyle]}>
--- a/packages/app/src/utils/tool-call-display.test.ts
+++ b/packages/app/src/utils/tool-call-display.test.ts
@@ -76,6 +76,34 @@ describe("tool-call-display", () => {
    });
  });

+  it("builds display model from worktree setup detail", () => {
+    const display = buildToolCallDisplayModel({
+      name: "paseo_worktree_setup",
+      status: "running",
+      error: null,
+      detail: {
+        type: "worktree_setup",
+        worktreePath: "/tmp/repo/.paseo/worktrees/repo/branch",
+        branchName: "feature-branch",
+        log: "==> [1/1] Running: npm install\n",
+        commands: [
+          {
+            index: 1,
+            command: "npm install",
+            cwd: "/tmp/repo/.paseo/worktrees/repo/branch",
+            status: "running",
+            exitCode: null,
+          },
+        ],
+      },
+    });
+
+    expect(display).toEqual({
+      displayName: "Worktree Setup",
+      summary: "feature-branch",
+    });
+  });
+
  it("does not derive command summary from unknown raw detail", () => {
    const display = buildToolCallDisplayModel({
      name: "exec_command",
--- a/packages/app/src/utils/tool-call-icon.ts
+++ b/packages/app/src/utils/tool-call-icon.ts
@@ -19,6 +19,7 @@ const TOOL_DETAIL_ICONS: Record<ToolCallDetail["type"], ToolCallIconComponent> =
  edit: Pencil,
  write: Pencil,
  search: Search,
+  worktree_setup: SquareTerminal,
  unknown: Wrench,
 };

--- a/packages/server/src/client/daemon-client.test.ts
+++ b/packages/server/src/client/daemon-client.test.ts
@@ -1236,4 +1236,89 @@ describe("DaemonClient", () => {
    expect(received).toHaveLength(0);
    expect(logger.warn).toHaveBeenCalled();
  });
+
+  test("sends subscribe/unsubscribe terminals messages", async () => {
+    const logger = createMockLogger();
+    const mock = createMockTransport();
+
+    const client = new DaemonClient({
+      url: "ws://test",
+      logger,
+      reconnect: { enabled: false },
+      transportFactory: () => mock.transport,
+    });
+    clients.push(client);
+
+    const connectPromise = client.connect();
+    mock.triggerOpen();
+    await connectPromise;
+
+    client.subscribeTerminals({ cwd: "/tmp/project" });
+    client.unsubscribeTerminals({ cwd: "/tmp/project" });
+
+    expect(mock.sent).toHaveLength(2);
+    expect(JSON.parse(String(mock.sent[0]))).toEqual({
+      type: "session",
+      message: {
+        type: "subscribe_terminals_request",
+        cwd: "/tmp/project",
+      },
+    });
+    expect(JSON.parse(String(mock.sent[1]))).toEqual({
+      type: "session",
+      message: {
+        type: "unsubscribe_terminals_request",
+        cwd: "/tmp/project",
+      },
+    });
+  });
+
+  test("dispatches terminals_changed events to typed listeners", async () => {
+    const logger = createMockLogger();
+    const mock = createMockTransport();
+
+    const client = new DaemonClient({
+      url: "ws://test",
+      logger,
+      reconnect: { enabled: false },
+      transportFactory: () => mock.transport,
+    });
+    clients.push(client);
+
+    const connectPromise = client.connect();
+    mock.triggerOpen();
+    await connectPromise;
+
+    const received: Array<{ cwd: string; names: string[] }> = [];
+    const unsubscribe = client.on("terminals_changed", (message) => {
+      received.push({
+        cwd: message.payload.cwd,
+        names: message.payload.terminals.map((terminal) => terminal.name),
+      });
+    });
+
+    mock.triggerMessage(
+      wrapSessionMessage({
+        type: "terminals_changed",
+        payload: {
+          cwd: "/tmp/project",
+          terminals: [
+            {
+              id: "term-1",
+              name: "Dev Server",
+            },
+          ],
+        },
+      })
+    );
+
+    unsubscribe();
+
+    expect(received).toEqual([
+      {
+        cwd: "/tmp/project",
+        names: ["Dev Server"],
+      },
+    ]);
+  });
 });
--- a/packages/server/src/client/daemon-client.ts
+++ b/packages/server/src/client/daemon-client.ts
@@ -356,6 +356,7 @@ export class DaemonClient {
    string,
    { cwd: string; compare: { mode: "uncommitted" | "base"; baseRef?: string } }
  >();
+  private terminalDirectorySubscriptions = new Set<string>();
  private logger: Logger;
  private pendingSendQueue: PendingSend[] = [];
  private relayClientId: string | null = null;
@@ -474,6 +475,7 @@ export class DaemonClient {
          this.updateConnectionState({ status: "connected" });
          this.resubscribeAgentUpdates();
          this.resubscribeCheckoutDiffSubscriptions();
+          this.resubscribeTerminalDirectorySubscriptions();
          this.flushPendingSendQueue();
          this.resolveConnect();
        }),
@@ -1093,6 +1095,18 @@ export class DaemonClient {
    }
  }

+  private resubscribeTerminalDirectorySubscriptions(): void {
+    if (this.terminalDirectorySubscriptions.size === 0) {
+      return;
+    }
+    for (const cwd of this.terminalDirectorySubscriptions) {
+      this.sendSessionMessage({
+        type: "subscribe_terminals_request",
+        cwd,
+      });
+    }
+  }
+
  // ============================================================================
  // Agent Lifecycle
  // ============================================================================
@@ -2314,6 +2328,28 @@ export class DaemonClient {
  // Terminals
  // ============================================================================

+  subscribeTerminals(input: { cwd: string }): void {
+    this.terminalDirectorySubscriptions.add(input.cwd);
+    if (!this.transport || this.connectionState.status !== "connected") {
+      return;
+    }
+    this.sendSessionMessage({
+      type: "subscribe_terminals_request",
+      cwd: input.cwd,
+    });
+  }
+
+  unsubscribeTerminals(input: { cwd: string }): void {
+    this.terminalDirectorySubscriptions.delete(input.cwd);
+    if (!this.transport || this.connectionState.status !== "connected") {
+      return;
+    }
+    this.sendSessionMessage({
+      type: "unsubscribe_terminals_request",
+      cwd: input.cwd,
+    });
+  }
+
  async listTerminals(
    cwd: string,
    requestId?: string
--- a/packages/server/src/server/agent/agent-management-mcp.ts
+++ b/packages/server/src/server/agent/agent-management-mcp.ts
@@ -46,7 +46,10 @@ import { toAgentPayload } from "./agent-projections.js";
 import { curateAgentActivity } from "./activity-curator.js";
 import { AGENT_PROVIDER_DEFINITIONS } from "./provider-registry.js";
 import { AgentStorage } from "./agent-storage.js";
-import { appendTimelineItemIfAgentKnown } from "./timeline-append.js";
+import {
+  appendTimelineItemIfAgentKnown,
+  emitLiveTimelineItemIfAgentKnown,
+} from "./timeline-append.js";
 import { type WorktreeConfig } from "../../utils/worktree.js";
 import { WaitForAgentTracker } from "./wait-for-agent-tracker.js";
 import { scheduleAgentMetadataGeneration } from "./agent-metadata-generator.js";
@@ -357,6 +360,12 @@ export async function createAgentManagementMcpServer(
              agentId: snapshot.id,
              item,
            }),
+          emitLiveTimelineItem: (item) =>
+            emitLiveTimelineItemIfAgentKnown({
+              agentManager,
+              agentId: snapshot.id,
+              item,
+            }),
          logger: childLogger,
        });
      }
--- a/packages/server/src/server/agent/agent-manager.test.ts
+++ b/packages/server/src/server/agent/agent-manager.test.ts
@@ -405,6 +405,66 @@ describe("AgentManager", () => {
    expect(result.rows[result.rows.length - 1]?.seq).toBe(3);
  });

+  test("emits live timeline updates without recording canonical timeline rows", async () => {
+    const workdir = mkdtempSync(join(tmpdir(), "agent-manager-live-timeline-"));
+    const storagePath = join(workdir, "agents");
+    const storage = new AgentStorage(storagePath, logger);
+    const manager = new AgentManager({
+      clients: {
+        codex: new TestAgentClient(),
+      },
+      registry: storage,
+      logger,
+      idFactory: () => "00000000-0000-4000-8000-000000000120",
+    });
+
+    const snapshot = await manager.createAgent({
+      provider: "codex",
+      cwd: workdir,
+    });
+
+    const streamEvents: Array<{
+      seq?: number;
+      epoch?: string;
+      eventType?: string;
+      itemType?: string;
+    }> = [];
+    manager.subscribe(
+      (event) => {
+        if (event.type !== "agent_stream") {
+          return;
+        }
+        streamEvents.push({
+          seq: event.seq,
+          epoch: event.epoch,
+          eventType: event.event.type,
+          itemType: event.event.type === "timeline" ? event.event.item.type : undefined,
+        });
+      },
+      { agentId: snapshot.id, replayState: false }
+    );
+
+    await manager.emitLiveTimelineItem(snapshot.id, {
+      type: "assistant_message",
+      text: "live-only update",
+    });
+
+    expect(streamEvents).toHaveLength(1);
+    expect(streamEvents[0]).toMatchObject({
+      eventType: "timeline",
+      itemType: "assistant_message",
+    });
+    expect(streamEvents[0]?.seq).toBeUndefined();
+    expect(streamEvents[0]?.epoch).toBeUndefined();
+
+    expect(manager.getTimeline(snapshot.id)).toEqual([]);
+    const fetched = manager.fetchTimeline(snapshot.id, {
+      direction: "tail",
+      limit: 0,
+    });
+    expect(fetched.rows).toEqual([]);
+  });
+
  test("fetchTimeline returns full timeline with reset when cursor seq falls behind retention window", async () => {
    const workdir = mkdtempSync(join(tmpdir(), "agent-manager-timeline-gap-"));
    const storagePath = join(workdir, "agents");
--- a/packages/server/src/server/agent/agent-manager.ts
+++ b/packages/server/src/server/agent/agent-manager.ts
@@ -895,6 +895,19 @@ export class AgentManager {
    await this.persistSnapshot(agent);
  }

+  async emitLiveTimelineItem(
+    agentId: string,
+    item: AgentTimelineItem
+  ): Promise<void> {
+    const agent = this.requireAgent(agentId);
+    this.touchUpdatedAt(agent);
+    this.dispatchStream(agentId, {
+      type: "timeline",
+      item,
+      provider: agent.provider,
+    });
+  }
+
  streamAgent(
    agentId: string,
    prompt: AgentPromptInput,
--- a/packages/server/src/server/agent/agent-sdk-types.ts
+++ b/packages/server/src/server/agent/agent-sdk-types.ts
@@ -134,6 +134,21 @@ export type ToolCallDetail =
      type: "search";
      query: string;
    }
+  | {
+      type: "worktree_setup";
+      worktreePath: string;
+      branchName: string;
+      log: string;
+      commands: Array<{
+        index: number;
+        command: string;
+        cwd: string;
+        status: "running" | "completed" | "failed";
+        exitCode: number | null;
+        durationMs?: number;
+      }>;
+      truncated?: boolean;
+    }
  | {
      type: "unknown";
      input: unknown | null;
--- a/packages/server/src/server/agent/mcp-server.ts
+++ b/packages/server/src/server/agent/mcp-server.ts
@@ -28,7 +28,10 @@ import { toAgentPayload } from "./agent-projections.js";
 import { curateAgentActivity } from "./activity-curator.js";
 import { AGENT_PROVIDER_DEFINITIONS } from "./provider-registry.js";
 import { AgentStorage } from "./agent-storage.js";
-import { appendTimelineItemIfAgentKnown } from "./timeline-append.js";
+import {
+  appendTimelineItemIfAgentKnown,
+  emitLiveTimelineItemIfAgentKnown,
+} from "./timeline-append.js";
 import { type WorktreeConfig } from "../../utils/worktree.js";
 import { WaitForAgentTracker } from "./wait-for-agent-tracker.js";
 import { scheduleAgentMetadataGeneration } from "./agent-metadata-generator.js";
@@ -563,6 +566,12 @@ export async function createAgentMcpServer(
              agentId: snapshot.id,
              item,
            }),
+          emitLiveTimelineItem: (item) =>
+            emitLiveTimelineItemIfAgentKnown({
+              agentManager,
+              agentId: snapshot.id,
+              item,
+            }),
          logger: childLogger,
        });
      }
--- a/packages/server/src/server/agent/timeline-append.ts
+++ b/packages/server/src/server/agent/timeline-append.ts
@@ -21,3 +21,18 @@ export async function appendTimelineItemIfAgentKnown(
    throw error;
  }
 }
+
+export async function emitLiveTimelineItemIfAgentKnown(
+  options: AppendTimelineItemIfAgentKnownOptions
+): Promise<boolean> {
+  try {
+    await options.agentManager.emitLiveTimelineItem(options.agentId, options.item);
+    return true;
+  } catch (error) {
+    const message = error instanceof Error ? error.message : String(error);
+    if (message.includes("Unknown agent")) {
+      return false;
+    }
+    throw error;
+  }
+}
--- a/packages/server/src/server/daemon-e2e/git-operations.e2e.test.ts
+++ b/packages/server/src/server/daemon-e2e/git-operations.e2e.test.ts
@@ -397,9 +397,10 @@ describe("daemon E2E", () => {
        );

        expect(completed.callId).toBeTruthy();
-        expect(completed.detail.type).toBe("unknown");
-        if (completed.detail.type === "unknown") {
-          expect(completed.detail.output).toBeTruthy();
+        expect(completed.detail.type).toBe("worktree_setup");
+        if (completed.detail.type === "worktree_setup") {
+          expect(completed.detail.commands.length).toBeGreaterThan(0);
+          expect(completed.detail.log.length).toBeGreaterThan(0);
        }
        expect(existsSync(path.join(agent.cwd, "setup-done.txt"))).toBe(true);

@@ -595,10 +596,12 @@ describe("daemon E2E", () => {
        expect(existsSync(path.join(agent.cwd, "setup-start.txt"))).toBe(true);
        expect(existsSync(path.join(agent.cwd, "should-not-run.txt"))).toBe(false);

-        const output = failed.detail.type === "unknown" ? failed.detail.output as any : undefined;
-        const commands = output?.commands as any[] | undefined;
-        expect(Array.isArray(commands)).toBe(true);
-        expect(commands?.[0]?.exitCode).toBe(7);
+        expect(failed.detail.type).toBe("worktree_setup");
+        if (failed.detail.type === "worktree_setup") {
+          expect(Array.isArray(failed.detail.commands)).toBe(true);
+          expect(failed.detail.commands[0]?.exitCode).toBe(7);
+          expect(failed.detail.log).toContain("Exit 7");
+        }

        await ctx.client.deleteAgent(agent.id);
        rmSync(repoRoot, { recursive: true, force: true });
--- a/packages/server/src/server/daemon-e2e/terminal.e2e.test.ts
+++ b/packages/server/src/server/daemon-e2e/terminal.e2e.test.ts
@@ -97,6 +97,42 @@ const shouldRun = !process.env.CI;
    30000
  );

+  test(
+    "emits terminals_changed for subscribed cwd when terminals are created",
+    async () => {
+      const cwd = tmpCwd();
+      await ctx.client.listTerminals(cwd);
+
+      const snapshots: Array<{ cwd: string; names: string[] }> = [];
+      const unsubscribe = ctx.client.on("terminals_changed", (message) => {
+        if (message.type !== "terminals_changed") {
+          return;
+        }
+        snapshots.push({
+          cwd: message.payload.cwd,
+          names: message.payload.terminals.map((terminal) => terminal.name),
+        });
+      });
+
+      ctx.client.subscribeTerminals({ cwd });
+      await ctx.client.createTerminal(cwd, "Dev Server");
+
+      await waitForCondition(
+        () =>
+          snapshots.some(
+            (snapshot) =>
+              snapshot.cwd === cwd && snapshot.names.includes("Dev Server")
+          ),
+        10000
+      );
+
+      ctx.client.unsubscribeTerminals({ cwd });
+      unsubscribe();
+      rmSync(cwd, { recursive: true, force: true });
+    },
+    30000
+  );
+
  test(
    "subscribes to terminal and receives state",
    async () => {
--- a/packages/server/src/server/session.ts
+++ b/packages/server/src/server/session.ts
@@ -15,6 +15,8 @@ import {
  type FileDownloadTokenRequest,
  type GitSetupOptions,
  type ListTerminalsRequest,
+  type SubscribeTerminalsRequest,
+  type UnsubscribeTerminalsRequest,
  type CreateTerminalRequest,
  type SubscribeTerminalRequest,
  type UnsubscribeTerminalRequest,
@@ -27,7 +29,10 @@ import {
  type ProjectCheckoutLitePayload,
  type ProjectPlacementPayload,
 } from "./messages.js";
-import type { TerminalManager } from "../terminal/terminal-manager.js";
+import type {
+  TerminalManager,
+  TerminalsChangedEvent,
+} from "../terminal/terminal-manager.js";
 import type { TerminalSession } from "../terminal/terminal.js";
 import {
  BinaryMuxChannel,
@@ -68,7 +73,10 @@ import type {
 } from "./agent/agent-manager.js";
 import { scheduleAgentMetadataGeneration } from "./agent/agent-metadata-generator.js";
 import { toAgentPayload } from "./agent/agent-projections.js";
-import { appendTimelineItemIfAgentKnown } from "./agent/timeline-append.js";
+import {
+  appendTimelineItemIfAgentKnown,
+  emitLiveTimelineItemIfAgentKnown,
+} from "./agent/timeline-append.js";
 import { projectTimelineRows, type TimelineProjectionMode } from "./agent/timeline-projection.js";
 import {
  StructuredAgentResponseError,
@@ -559,6 +567,8 @@ export class Session {
  } | null = null;
  private readonly MOBILE_BACKGROUND_STREAM_GRACE_MS = 60_000;
  private readonly terminalManager: TerminalManager | null;
+  private readonly subscribedTerminalDirectories = new Set<string>();
+  private unsubscribeTerminalsChanged: (() => void) | null = null;
  private terminalSubscriptions: Map<string, () => void> = new Map();
  private terminalExitSubscriptions: Map<string, () => void> = new Map();
  private readonly terminalStreams = new Map<
@@ -627,6 +637,11 @@ export class Session {
    this.agentStorage = agentStorage;
    this.createAgentMcpTransport = createAgentMcpTransport;
    this.terminalManager = terminalManager;
+    if (this.terminalManager) {
+      this.unsubscribeTerminalsChanged = this.terminalManager.subscribeTerminalsChanged(
+        (event) => this.handleTerminalsChanged(event)
+      );
+    }
    this.voiceAgentMcpStdio = voice?.voiceAgentMcpStdio ?? null;
    const configuredModelsDir = dictation?.localModels?.modelsDir?.trim();
    this.localSpeechModelsDir =
@@ -1439,6 +1454,14 @@ export class Session {
          this.handleRegisterPushToken(msg.token);
          break;

+        case "subscribe_terminals_request":
+          this.handleSubscribeTerminalsRequest(msg);
+          break;
+
+        case "unsubscribe_terminals_request":
+          this.handleUnsubscribeTerminalsRequest(msg);
+          break;
+
        case "list_terminals_request":
          await this.handleListTerminalsRequest(msg);
          break;
@@ -2417,6 +2440,12 @@ export class Session {
              agentId: snapshot.id,
              item,
            }),
+          emitLiveTimelineItem: (item) =>
+            emitLiveTimelineItemIfAgentKnown({
+              agentManager: this.agentManager,
+              agentId: snapshot.id,
+              item,
+            }),
          logger: this.sessionLogger,
        });
      }
@@ -6097,6 +6126,12 @@ export class Session {
    this.isVoiceMode = false;

    // Unsubscribe from all terminals
+    if (this.unsubscribeTerminalsChanged) {
+      this.unsubscribeTerminalsChanged();
+      this.unsubscribeTerminalsChanged = null;
+    }
+    this.subscribedTerminalDirectories.clear();
+
    for (const unsubscribe of this.terminalSubscriptions.values()) {
      unsubscribe();
    }
@@ -6155,6 +6190,81 @@ export class Session {
    }
  }

+  private emitTerminalsChangedSnapshot(input: {
+    cwd: string;
+    terminals: Array<{ id: string; name: string }>;
+  }): void {
+    this.emit({
+      type: "terminals_changed",
+      payload: {
+        cwd: input.cwd,
+        terminals: input.terminals,
+      },
+    });
+  }
+
+  private handleTerminalsChanged(event: TerminalsChangedEvent): void {
+    if (!this.subscribedTerminalDirectories.has(event.cwd)) {
+      return;
+    }
+
+    this.emitTerminalsChangedSnapshot({
+      cwd: event.cwd,
+      terminals: event.terminals.map((terminal) => ({
+        id: terminal.id,
+        name: terminal.name,
+      })),
+    });
+  }
+
+  private handleSubscribeTerminalsRequest(msg: SubscribeTerminalsRequest): void {
+    this.subscribedTerminalDirectories.add(msg.cwd);
+    void this.emitInitialTerminalsChangedSnapshot(msg.cwd);
+  }
+
+  private handleUnsubscribeTerminalsRequest(msg: UnsubscribeTerminalsRequest): void {
+    this.subscribedTerminalDirectories.delete(msg.cwd);
+  }
+
+  private async emitInitialTerminalsChangedSnapshot(cwd: string): Promise<void> {
+    if (!this.terminalManager || !this.subscribedTerminalDirectories.has(cwd)) {
+      return;
+    }
+
+    const hadDirectoryBeforeSubscribe = this.terminalManager
+      .listDirectories()
+      .includes(cwd);
+
+    try {
+      const terminals = await this.terminalManager.getTerminals(cwd);
+      for (const terminal of terminals) {
+        this.ensureTerminalExitSubscription(terminal);
+      }
+
+      // New directories auto-create Terminal 1, which already emits through
+      // terminal-manager change listeners.
+      if (!hadDirectoryBeforeSubscribe) {
+        return;
+      }
+      if (!this.subscribedTerminalDirectories.has(cwd)) {
+        return;
+      }
+
+      this.emitTerminalsChangedSnapshot({
+        cwd,
+        terminals: terminals.map((terminal) => ({
+          id: terminal.id,
+          name: terminal.name,
+        })),
+      });
+    } catch (error) {
+      this.sessionLogger.warn(
+        { err: error, cwd },
+        "Failed to emit initial terminal snapshot"
+      );
+    }
+  }
+
  private async handleListTerminalsRequest(msg: ListTerminalsRequest): Promise<void> {
    if (!this.terminalManager) {
      this.emit({
--- a/packages/server/src/server/worktree-bootstrap.test.ts
+++ b/packages/server/src/server/worktree-bootstrap.test.ts
@@ -0,0 +1,239 @@
+import { describe, it, expect, beforeEach, afterEach } from "vitest";
+import { execSync } from "child_process";
+import { mkdtempSync, realpathSync, rmSync, writeFileSync } from "fs";
+import { join } from "path";
+import { tmpdir } from "os";
+
+import type { AgentTimelineItem } from "./agent/agent-sdk-types.js";
+import {
+  createAgentWorktree,
+  runAsyncWorktreeBootstrap,
+} from "./worktree-bootstrap.js";
+
+describe("runAsyncWorktreeBootstrap", () => {
+  let tempDir: string;
+  let repoDir: string;
+  let paseoHome: string;
+
+  beforeEach(() => {
+    tempDir = realpathSync(mkdtempSync(join(tmpdir(), "worktree-bootstrap-test-")));
+    repoDir = join(tempDir, "repo");
+    paseoHome = join(tempDir, "paseo-home");
+
+    execSync(`mkdir -p ${repoDir}`);
+    execSync("git init -b main", { cwd: repoDir, stdio: "pipe" });
+    execSync("git config user.email 'test@test.com'", { cwd: repoDir, stdio: "pipe" });
+    execSync("git config user.name 'Test'", { cwd: repoDir, stdio: "pipe" });
+    execSync("echo 'hello' > file.txt", { cwd: repoDir, stdio: "pipe" });
+    execSync("git add .", { cwd: repoDir, stdio: "pipe" });
+    execSync("git -c commit.gpgsign=false commit -m 'initial'", { cwd: repoDir, stdio: "pipe" });
+  });
+
+  afterEach(() => {
+    rmSync(tempDir, { recursive: true, force: true });
+  });
+
+  it("streams running setup updates live and persists only a final setup timeline row", async () => {
+    writeFileSync(
+      join(repoDir, "paseo.json"),
+      JSON.stringify({
+        worktree: {
+          setup: ['echo "line-one"; echo "line-two" 1>&2', 'echo "line-three"'],
+        },
+      })
+    );
+    execSync("git add paseo.json", { cwd: repoDir, stdio: "pipe" });
+    execSync("git -c commit.gpgsign=false commit -m 'add setup'", {
+      cwd: repoDir,
+      stdio: "pipe",
+    });
+
+    const worktree = await createAgentWorktree({
+      cwd: repoDir,
+      branchName: "feature-streaming-setup",
+      baseBranch: "main",
+      worktreeSlug: "feature-streaming-setup",
+      paseoHome,
+    });
+
+    const persisted: AgentTimelineItem[] = [];
+    const live: AgentTimelineItem[] = [];
+
+    await runAsyncWorktreeBootstrap({
+      agentId: "agent-test",
+      worktree,
+      terminalManager: null,
+      appendTimelineItem: async (item) => {
+        persisted.push(item);
+        return true;
+      },
+      emitLiveTimelineItem: async (item: AgentTimelineItem) => {
+        live.push(item);
+        return true;
+      },
+    });
+
+    const liveSetupItems = live.filter(
+      (item) =>
+        item.type === "tool_call" &&
+        item.name === "paseo_worktree_setup" &&
+        item.status === "running"
+    );
+    expect(liveSetupItems.length).toBeGreaterThan(0);
+
+    const persistedSetupItems = persisted.filter(
+      (item) => item.type === "tool_call" && item.name === "paseo_worktree_setup"
+    );
+    expect(persistedSetupItems).toHaveLength(1);
+    expect(persistedSetupItems[0]?.type).toBe("tool_call");
+    if (persistedSetupItems[0]?.type === "tool_call") {
+      expect(persistedSetupItems[0].status).toBe("completed");
+      expect(persistedSetupItems[0].detail.type).toBe("worktree_setup");
+
+      if (persistedSetupItems[0].detail.type === "worktree_setup") {
+        expect(persistedSetupItems[0].detail.log).toContain(
+          "==> [1/2] Running: echo \"line-one\"; echo \"line-two\" 1>&2"
+        );
+        expect(persistedSetupItems[0].detail.log).toContain("line-one");
+        expect(persistedSetupItems[0].detail.log).toContain("line-two");
+        expect(persistedSetupItems[0].detail.log).toContain(
+          "==> [2/2] Running: echo \"line-three\""
+        );
+        expect(persistedSetupItems[0].detail.log).toContain("line-three");
+        expect(persistedSetupItems[0].detail.log).toMatch(/<== \[1\/2\] Exit 0 in \d+\.\d{2}s/);
+        expect(persistedSetupItems[0].detail.log).toMatch(/<== \[2\/2\] Exit 0 in \d+\.\d{2}s/);
+
+        expect(persistedSetupItems[0].detail.commands).toHaveLength(2);
+        expect(persistedSetupItems[0].detail.commands[0]).toMatchObject({
+          index: 1,
+          command: 'echo "line-one"; echo "line-two" 1>&2',
+          status: "completed",
+          exitCode: 0,
+        });
+        expect(persistedSetupItems[0].detail.commands[1]).toMatchObject({
+          index: 2,
+          command: 'echo "line-three"',
+          status: "completed",
+          exitCode: 0,
+        });
+        expect(
+          typeof persistedSetupItems[0].detail.commands[0]?.durationMs === "number"
+        ).toBe(true);
+        expect(
+          typeof persistedSetupItems[0].detail.commands[1]?.durationMs === "number"
+        ).toBe(true);
+      }
+    }
+
+    const liveCallIds = new Set(
+      liveSetupItems
+        .filter((item): item is Extract<AgentTimelineItem, { type: "tool_call" }> => item.type === "tool_call")
+        .map((item) => item.callId)
+    );
+    expect(liveCallIds.size).toBe(1);
+    if (persistedSetupItems[0]?.type === "tool_call") {
+      expect(liveCallIds.has(persistedSetupItems[0].callId)).toBe(true);
+    }
+  });
+
+  it("does not fail setup when live timeline emission throws", async () => {
+    writeFileSync(
+      join(repoDir, "paseo.json"),
+      JSON.stringify({
+        worktree: {
+          setup: ['echo "ok"'],
+        },
+      })
+    );
+    execSync("git add paseo.json", { cwd: repoDir, stdio: "pipe" });
+    execSync("git -c commit.gpgsign=false commit -m 'add setup'", {
+      cwd: repoDir,
+      stdio: "pipe",
+    });
+
+    const worktree = await createAgentWorktree({
+      cwd: repoDir,
+      branchName: "feature-live-failure",
+      baseBranch: "main",
+      worktreeSlug: "feature-live-failure",
+      paseoHome,
+    });
+
+    const persisted: AgentTimelineItem[] = [];
+    await expect(
+      runAsyncWorktreeBootstrap({
+        agentId: "agent-live-failure",
+        worktree,
+        terminalManager: null,
+        appendTimelineItem: async (item) => {
+          persisted.push(item);
+          return true;
+        },
+        emitLiveTimelineItem: async () => {
+          throw new Error("live emit failed");
+        },
+      })
+    ).resolves.toBeUndefined();
+
+    const persistedSetupItems = persisted.filter(
+      (item) => item.type === "tool_call" && item.name === "paseo_worktree_setup"
+    );
+    expect(persistedSetupItems).toHaveLength(1);
+    if (persistedSetupItems[0]?.type === "tool_call") {
+      expect(persistedSetupItems[0].status).toBe("completed");
+    }
+  });
+
+  it("truncates each command output to 64kb in the middle", async () => {
+    const largeOutputCommand =
+      "node -e \"process.stdout.write('prefix-'); process.stdout.write('x'.repeat(70000)); process.stdout.write('-suffix')\"";
+    writeFileSync(
+      join(repoDir, "paseo.json"),
+      JSON.stringify({
+        worktree: {
+          setup: [largeOutputCommand],
+        },
+      })
+    );
+    execSync("git add paseo.json", { cwd: repoDir, stdio: "pipe" });
+    execSync("git -c commit.gpgsign=false commit -m 'add large output setup'", {
+      cwd: repoDir,
+      stdio: "pipe",
+    });
+
+    const worktree = await createAgentWorktree({
+      cwd: repoDir,
+      branchName: "feature-large-output",
+      baseBranch: "main",
+      worktreeSlug: "feature-large-output",
+      paseoHome,
+    });
+
+    const persisted: AgentTimelineItem[] = [];
+    await runAsyncWorktreeBootstrap({
+      agentId: "agent-large-output",
+      worktree,
+      terminalManager: null,
+      appendTimelineItem: async (item) => {
+        persisted.push(item);
+        return true;
+      },
+      emitLiveTimelineItem: async () => true,
+    });
+
+    const persistedSetupItem = persisted.find(
+      (item): item is Extract<AgentTimelineItem, { type: "tool_call" }> =>
+        item.type === "tool_call" && item.name === "paseo_worktree_setup"
+    );
+    expect(persistedSetupItem).toBeDefined();
+    expect(persistedSetupItem?.detail.type).toBe("worktree_setup");
+    if (!persistedSetupItem || persistedSetupItem.detail.type !== "worktree_setup") {
+      throw new Error("Expected worktree_setup tool detail");
+    }
+
+    expect(persistedSetupItem.detail.truncated).toBe(true);
+    expect(persistedSetupItem.detail.log).toContain("prefix-");
+    expect(persistedSetupItem.detail.log).toContain("-suffix");
+    expect(persistedSetupItem.detail.log).toContain("...<output truncated in the middle>...");
+  });
+});
--- a/packages/server/src/server/worktree-bootstrap.ts
+++ b/packages/server/src/server/worktree-bootstrap.ts
@@ -24,6 +24,7 @@ export interface RunAsyncWorktreeBootstrapOptions {
  worktree: WorktreeConfig;
  terminalManager: TerminalManager | null;
  appendTimelineItem: (item: AgentTimelineItem) => Promise<boolean>;
+  emitLiveTimelineItem?: (item: AgentTimelineItem) => Promise<boolean>;
  logger?: Logger;
 }

@@ -35,6 +36,116 @@ export interface CreateAgentWorktreeOptions {
  paseoHome?: string;
 }

+const MAX_WORKTREE_SETUP_COMMAND_OUTPUT_BYTES = 64 * 1024;
+const WORKTREE_SETUP_TRUNCATION_MARKER = "\n...<output truncated in the middle>...\n";
+
+type MiddleTruncationAccumulator = {
+  totalBytes: number;
+  head: string;
+  tail: string;
+  truncated: boolean;
+};
+
+function byteLength(text: string): number {
+  return Buffer.byteLength(text, "utf8");
+}
+
+function sliceFirstBytes(text: string, maxBytes: number): string {
+  if (maxBytes <= 0 || text.length === 0) {
+    return "";
+  }
+  const bytes = Buffer.from(text, "utf8");
+  if (bytes.length <= maxBytes) {
+    return text;
+  }
+  return bytes.subarray(0, maxBytes).toString("utf8");
+}
+
+function sliceLastBytes(text: string, maxBytes: number): string {
+  if (maxBytes <= 0 || text.length === 0) {
+    return "";
+  }
+  const bytes = Buffer.from(text, "utf8");
+  if (bytes.length <= maxBytes) {
+    return text;
+  }
+  return bytes.subarray(bytes.length - maxBytes).toString("utf8");
+}
+
+function createMiddleTruncationAccumulator(): MiddleTruncationAccumulator {
+  return {
+    totalBytes: 0,
+    head: "",
+    tail: "",
+    truncated: false,
+  };
+}
+
+function getHeadTailBudgets(maxBytes: number): { headBytes: number; tailBytes: number } {
+  const markerBytes = byteLength(WORKTREE_SETUP_TRUNCATION_MARKER);
+  const availableBytes = Math.max(0, maxBytes - markerBytes);
+  const headBytes = Math.floor(availableBytes / 2);
+  const tailBytes = availableBytes - headBytes;
+  return { headBytes, tailBytes };
+}
+
+function appendToMiddleTruncationAccumulator(
+  accumulator: MiddleTruncationAccumulator,
+  chunk: string
+): void {
+  if (!chunk) {
+    return;
+  }
+  accumulator.totalBytes += byteLength(chunk);
+
+  if (!accumulator.truncated) {
+    const combined = `${accumulator.head}${chunk}`;
+    if (byteLength(combined) <= MAX_WORKTREE_SETUP_COMMAND_OUTPUT_BYTES) {
+      accumulator.head = combined;
+      return;
+    }
+    const { headBytes, tailBytes } = getHeadTailBudgets(
+      MAX_WORKTREE_SETUP_COMMAND_OUTPUT_BYTES
+    );
+    accumulator.head = sliceFirstBytes(combined, headBytes);
+    accumulator.tail = sliceLastBytes(combined, tailBytes);
+    accumulator.truncated = true;
+    return;
+  }
+
+  const { tailBytes } = getHeadTailBudgets(MAX_WORKTREE_SETUP_COMMAND_OUTPUT_BYTES);
+  accumulator.tail = sliceLastBytes(`${accumulator.tail}${chunk}`, tailBytes);
+}
+
+function truncateTextInMiddle(
+  text: string,
+  maxBytes: number
+): { text: string; truncated: boolean } {
+  if (maxBytes <= 0 || !text) {
+    return { text: "", truncated: text.length > 0 };
+  }
+  if (byteLength(text) <= maxBytes) {
+    return { text, truncated: false };
+  }
+  const { headBytes, tailBytes } = getHeadTailBudgets(maxBytes);
+  return {
+    text: `${sliceFirstBytes(text, headBytes)}${WORKTREE_SETUP_TRUNCATION_MARKER}${sliceLastBytes(text, tailBytes)}`,
+    truncated: true,
+  };
+}
+
+function renderMiddleTruncationAccumulator(
+  accumulator: MiddleTruncationAccumulator
+): { text: string; truncated: boolean } {
+  if (!accumulator.truncated) {
+    return { text: accumulator.head, truncated: false };
+  }
+  return {
+    text: `${accumulator.head}${WORKTREE_SETUP_TRUNCATION_MARKER}${accumulator.tail}`,
+    truncated: true,
+  };
+}
+
 export async function createAgentWorktree(
  options: CreateAgentWorktreeOptions
 ): Promise<WorktreeConfig> {
@@ -48,25 +159,88 @@ export async function createAgentWorktree(
  });
 }

+function formatDurationMs(durationMs: number): string {
+  return `${(durationMs / 1000).toFixed(2)}s`;
+}
+
+function commandStatusFromResult(
+  result: WorktreeSetupCommandResult
+): "running" | "completed" | "failed" {
+  if (result.exitCode === null) {
+    return "running";
+  }
+  return result.exitCode === 0 ? "completed" : "failed";
+}
+
+function buildWorktreeSetupLog(input: {
+  results: WorktreeSetupCommandResult[];
+  outputAccumulatorsByIndex?: Map<number, MiddleTruncationAccumulator>;
+}): { log: string; truncated: boolean } {
+  const { results, outputAccumulatorsByIndex } = input;
+  if (results.length === 0) {
+    return {
+      log: "",
+      truncated: false,
+    };
+  }
+
+  const lines: string[] = [];
+  let anyTruncated = false;
+  const total = results.length;
+  for (const [index, result] of results.entries()) {
+    lines.push(`==> [${index + 1}/${total}] Running: ${result.command}`);
+    const accumulator = outputAccumulatorsByIndex?.get(index + 1);
+    const output = accumulator
+      ? renderMiddleTruncationAccumulator(accumulator)
+      : truncateTextInMiddle(
+          `${result.stdout ?? ""}${result.stderr ?? ""}`,
+          MAX_WORKTREE_SETUP_COMMAND_OUTPUT_BYTES
+        );
+    if (output.text.length > 0) {
+      lines.push(output.text.replace(/\n$/, ""));
+    }
+    if (output.truncated) {
+      anyTruncated = true;
+    }
+    if (result.exitCode !== null) {
+      lines.push(
+        `<== [${index + 1}/${total}] Exit ${result.exitCode} in ${formatDurationMs(result.durationMs)}`
+      );
+    }
+  }
+  return {
+    log: lines.join("\n"),
+    truncated: anyTruncated,
+  };
+}
+
 function buildSetupTimelineItem(input: {
  callId: string;
  status: "running" | "completed" | "failed";
  worktree: WorktreeConfig;
  results: WorktreeSetupCommandResult[];
+  outputAccumulatorsByIndex?: Map<number, MiddleTruncationAccumulator>;
  errorMessage: string | null;
 }): AgentTimelineItem {
-  const detailInput = {
+  const commands = input.results.map((result, index) => ({
+    index: index + 1,
+    command: result.command,
+    cwd: result.cwd,
+    status: commandStatusFromResult(result),
+    exitCode: result.exitCode,
+    ...(result.durationMs > 0 ? { durationMs: result.durationMs } : {}),
+  }));
+  const renderedLog = buildWorktreeSetupLog({
+    results: input.results,
+    outputAccumulatorsByIndex: input.outputAccumulatorsByIndex,
+  });
+  const detail = {
+    type: "worktree_setup" as const,
    worktreePath: input.worktree.worktreePath,
    branchName: input.worktree.branchName,
-  };
-  const detailOutput = {
-    worktreePath: input.worktree.worktreePath,
-    commands: input.results.map((result) => ({
-      command: result.command,
-      cwd: result.cwd,
-      exitCode: result.exitCode,
-      output: `${result.stdout ?? ""}${result.stderr ? `\n${result.stderr}` : ""}`.trim(),
-    })),
+    log: renderedLog.log,
+    commands,
+    ...(renderedLog.truncated ? { truncated: true } : {}),
  };

  if (input.status === "running") {
@@ -75,11 +249,7 @@ function buildSetupTimelineItem(input: {
      name: "paseo_worktree_setup",
      callId: input.callId,
      status: "running",
-      detail: {
-        type: "unknown",
-        input: detailInput,
-        output: null,
-      },
+      detail,
      error: null,
    };
  }
@@ -90,11 +260,7 @@ function buildSetupTimelineItem(input: {
      name: "paseo_worktree_setup",
      callId: input.callId,
      status: "completed",
-      detail: {
-        type: "unknown",
-        input: detailInput,
-        output: detailOutput,
-      },
+      detail,
      error: null,
    };
  }
@@ -104,11 +270,7 @@ function buildSetupTimelineItem(input: {
    name: "paseo_worktree_setup",
    callId: input.callId,
    status: "failed",
-    detail: {
-      type: "unknown",
-      input: detailInput,
-      output: detailOutput,
-    },
+    detail,
    error: { message: input.errorMessage ?? "Worktree setup failed" },
  };
 }
@@ -258,40 +420,105 @@ export async function runAsyncWorktreeBootstrap(
 ): Promise<void> {
  const setupCallId = uuidv4();
  let setupResults: WorktreeSetupCommandResult[] = [];
+  const emitLiveTimelineItem = options.emitLiveTimelineItem;
+  const runningResultsByIndex = new Map<number, WorktreeSetupCommandResult>();
+  const outputAccumulatorsByIndex = new Map<number, MiddleTruncationAccumulator>();
+  let liveEmitQueue = Promise.resolve();

-  try {
-    const started = await options.appendTimelineItem(
-      buildSetupTimelineItem({
-        callId: setupCallId,
-        status: "running",
-        worktree: options.worktree,
-        results: [],
-        errorMessage: null,
-      })
-    );
-    if (!started) {
+  const queueLiveRunningEmit = () => {
+    if (!emitLiveTimelineItem) {
      return;
    }
+    const runningResults = Array.from(runningResultsByIndex.entries())
+      .sort((a, b) => a[0] - b[0])
+      .map(([, result]) => result);
+    liveEmitQueue = liveEmitQueue.then(async () => {
+      try {
+        await emitLiveTimelineItem(
+          buildSetupTimelineItem({
+            callId: setupCallId,
+            status: "running",
+            worktree: options.worktree,
+            results: runningResults,
+            outputAccumulatorsByIndex,
+            errorMessage: null,
+          })
+        );
+      } catch (error) {
+        options.logger?.warn(
+          { err: error, agentId: options.agentId },
+          "Failed to emit live worktree setup timeline update"
+        );
+      }
+    });
+  };

+  try {
    setupResults = await runWorktreeSetupCommands({
      worktreePath: options.worktree.worktreePath,
      branchName: options.worktree.branchName,
      cleanupOnFailure: false,
+      onEvent: (event) => {
+        const existing = runningResultsByIndex.get(event.index);
+        const baseResult: WorktreeSetupCommandResult = existing ?? {
+          command: event.command,
+          cwd: event.cwd,
+          stdout: "",
+          stderr: "",
+          exitCode: null,
+          durationMs: 0,
+        };
+        if (event.type === "output") {
+          const outputAccumulator =
+            outputAccumulatorsByIndex.get(event.index) ??
+            createMiddleTruncationAccumulator();
+          appendToMiddleTruncationAccumulator(outputAccumulator, event.chunk);
+          outputAccumulatorsByIndex.set(event.index, outputAccumulator);
+          runningResultsByIndex.set(event.index, {
+            ...baseResult,
+            // Keep the timeline command model lightweight; output is carried in
+            // outputAccumulatorsByIndex.
+            stdout: baseResult.stdout,
+            stderr: baseResult.stderr,
+          });
+          queueLiveRunningEmit();
+          return;
+        }
+        if (event.type === "command_completed") {
+          runningResultsByIndex.set(event.index, {
+            ...baseResult,
+            stdout: event.stdout,
+            stderr: event.stderr,
+            exitCode: event.exitCode,
+            durationMs: event.durationMs,
+          });
+          queueLiveRunningEmit();
+          return;
+        }
+        runningResultsByIndex.set(event.index, baseResult);
+        queueLiveRunningEmit();
+      },
    });
+    await liveEmitQueue;

-    await options.appendTimelineItem(
+    const completed = await options.appendTimelineItem(
      buildSetupTimelineItem({
        callId: setupCallId,
        status: "completed",
        worktree: options.worktree,
        results: setupResults,
+        outputAccumulatorsByIndex,
        errorMessage: null,
      })
    );
+    if (!completed) {
+      return;
+    }
  } catch (error) {
    if (error instanceof WorktreeSetupError) {
      setupResults = error.results;
    }
+    await liveEmitQueue;
    const message = error instanceof Error ? error.message : String(error);
    await options.appendTimelineItem(
      buildSetupTimelineItem({
@@ -299,6 +526,7 @@ export async function runAsyncWorktreeBootstrap(
        status: "failed",
        worktree: options.worktree,
        results: setupResults,
+        outputAccumulatorsByIndex,
        errorMessage: message,
      })
    );
--- a/packages/server/src/shared/messages.ts
+++ b/packages/server/src/shared/messages.ts
@@ -188,6 +188,23 @@ const ToolCallDetailPayloadSchema: z.ZodType<ToolCallDetail> = z.discriminatedUn
    type: z.literal("search"),
    query: z.string(),
  }),
+  z.object({
+    type: z.literal("worktree_setup"),
+    worktreePath: z.string(),
+    branchName: z.string(),
+    log: z.string(),
+    commands: z.array(
+      z.object({
+        index: z.number().int().positive(),
+        command: z.string(),
+        cwd: z.string(),
+        status: z.enum(["running", "completed", "failed"]),
+        exitCode: z.number().nullable(),
+        durationMs: z.number().nonnegative().optional(),
+      })
+    ),
+    truncated: z.boolean().optional(),
+  }),
  z.object({
    type: z.literal("unknown"),
    input: UnknownValueSchema,
@@ -948,6 +965,16 @@ export const ListTerminalsRequestSchema = z.object({
  requestId: z.string(),
 });

+export const SubscribeTerminalsRequestSchema = z.object({
+  type: z.literal("subscribe_terminals_request"),
+  cwd: z.string(),
+});
+
+export const UnsubscribeTerminalsRequestSchema = z.object({
+  type: z.literal("unsubscribe_terminals_request"),
+  cwd: z.string(),
+});
+
 export const CreateTerminalRequestSchema = z.object({
  type: z.literal("create_terminal_request"),
  cwd: z.string(),
@@ -1060,6 +1087,8 @@ export const SessionInboundMessageSchema = z.discriminatedUnion("type", [
  ExecuteCommandRequestSchema,
  RegisterPushTokenMessageSchema,
  ListTerminalsRequestSchema,
+  SubscribeTerminalsRequestSchema,
+  UnsubscribeTerminalsRequestSchema,
  CreateTerminalRequestSchema,
  SubscribeTerminalRequestSchema,
  UnsubscribeTerminalRequestSchema,
@@ -1885,6 +1914,14 @@ export const ListTerminalsResponseSchema = z.object({
  }),
 });

+export const TerminalsChangedSchema = z.object({
+  type: z.literal("terminals_changed"),
+  payload: z.object({
+    cwd: z.string(),
+    terminals: z.array(TerminalInfoSchema.omit({ cwd: true })),
+  }),
+});
+
 export const CreateTerminalResponseSchema = z.object({
  type: z.literal("create_terminal_response"),
  payload: z.object({
@@ -2006,6 +2043,7 @@ export const SessionOutboundMessageSchema = z.discriminatedUnion("type", [
  ListCommandsResponseSchema,
  ExecuteCommandResponseSchema,
  ListTerminalsResponseSchema,
+  TerminalsChangedSchema,
  CreateTerminalResponseSchema,
  SubscribeTerminalResponseSchema,
  TerminalOutputSchema,
@@ -2149,6 +2187,9 @@ export type RegisterPushTokenMessage = z.infer<typeof RegisterPushTokenMessageSc
 // Terminal message types
 export type ListTerminalsRequest = z.infer<typeof ListTerminalsRequestSchema>;
 export type ListTerminalsResponse = z.infer<typeof ListTerminalsResponseSchema>;
+export type SubscribeTerminalsRequest = z.infer<typeof SubscribeTerminalsRequestSchema>;
+export type UnsubscribeTerminalsRequest = z.infer<typeof UnsubscribeTerminalsRequestSchema>;
+export type TerminalsChanged = z.infer<typeof TerminalsChangedSchema>;
 export type CreateTerminalRequest = z.infer<typeof CreateTerminalRequestSchema>;
 export type CreateTerminalResponse = z.infer<typeof CreateTerminalResponseSchema>;
 export type SubscribeTerminalRequest = z.infer<typeof SubscribeTerminalRequestSchema>;
--- a/packages/server/src/shared/tool-call-display.test.ts
+++ b/packages/server/src/shared/tool-call-display.test.ts
@@ -59,6 +59,34 @@ describe("shared tool-call display mapping", () => {
    });
  });

+  it("builds display model for worktree setup detail", () => {
+    const display = buildToolCallDisplayModel({
+      name: "paseo_worktree_setup",
+      status: "running",
+      error: null,
+      detail: {
+        type: "worktree_setup",
+        worktreePath: "/tmp/repo/.paseo/worktrees/repo/branch",
+        branchName: "feature-branch",
+        log: "==> [1/1] Running: npm install\n",
+        commands: [
+          {
+            index: 1,
+            command: "npm install",
+            cwd: "/tmp/repo/.paseo/worktrees/repo/branch",
+            status: "running",
+            exitCode: null,
+          },
+        ],
+      },
+    });
+
+    expect(display).toEqual({
+      displayName: "Worktree Setup",
+      summary: "feature-branch",
+    });
+  });
+
  it("provides errorText for failed calls", () => {
    const display = buildToolCallDisplayModel({
      name: "shell",
--- a/packages/server/src/shared/tool-call-display.ts
+++ b/packages/server/src/shared/tool-call-display.ts
@@ -83,6 +83,10 @@ export function buildToolCallDisplayModel(input: ToolCallDisplayInput): ToolCall
      displayName = "Search";
      summary = input.detail.query;
      break;
+    case "worktree_setup":
+      displayName = "Worktree Setup";
+      summary = input.detail.branchName;
+      break;
    case "unknown":
      break;
  }
--- a/packages/server/src/terminal/terminal-manager.test.ts
+++ b/packages/server/src/terminal/terminal-manager.test.ts
@@ -201,4 +201,52 @@ describe("TerminalManager", () => {
      expect(manager.getTerminal(homeId)).toBeUndefined();
    });
  });
+
+  describe("subscribeTerminalsChanged", () => {
+    it("emits cwd snapshots when terminals are created", async () => {
+      manager = createTerminalManager();
+      const snapshots: Array<{ cwd: string; terminalNames: string[] }> = [];
+      const unsubscribe = manager.subscribeTerminalsChanged((input) => {
+        snapshots.push({
+          cwd: input.cwd,
+          terminalNames: input.terminals.map((terminal) => terminal.name),
+        });
+      });
+
+      await manager.getTerminals("/tmp");
+      await manager.createTerminal({ cwd: "/tmp", name: "Dev Server" });
+
+      expect(snapshots).toContainEqual({
+        cwd: "/tmp",
+        terminalNames: ["Terminal 1"],
+      });
+      expect(snapshots).toContainEqual({
+        cwd: "/tmp",
+        terminalNames: ["Terminal 1", "Dev Server"],
+      });
+
+      unsubscribe();
+    });
+
+    it("emits empty snapshot when last terminal is removed", async () => {
+      manager = createTerminalManager();
+      const snapshots: Array<{ cwd: string; terminalCount: number }> = [];
+      const unsubscribe = manager.subscribeTerminalsChanged((input) => {
+        snapshots.push({
+          cwd: input.cwd,
+          terminalCount: input.terminals.length,
+        });
+      });
+
+      const terminals = await manager.getTerminals("/tmp");
+      manager.killTerminal(terminals[0].id);
+
+      expect(snapshots).toContainEqual({
+        cwd: "/tmp",
+        terminalCount: 0,
+      });
+
+      unsubscribe();
+    });
+  });
 });
--- a/packages/server/src/terminal/terminal-manager.ts
+++ b/packages/server/src/terminal/terminal-manager.ts
@@ -1,5 +1,18 @@
 import { createTerminal, type TerminalSession } from "./terminal.js";

+export interface TerminalListItem {
+  id: string;
+  name: string;
+  cwd: string;
+}
+
+export interface TerminalsChangedEvent {
+  cwd: string;
+  terminals: TerminalListItem[];
+}
+
+export type TerminalsChangedListener = (input: TerminalsChangedEvent) => void;
+
 export interface TerminalManager {
  getTerminals(cwd: string): Promise<TerminalSession[]>;
  createTerminal(options: { cwd: string; name?: string }): Promise<TerminalSession>;
@@ -7,12 +20,14 @@ export interface TerminalManager {
  killTerminal(id: string): void;
  listDirectories(): string[];
  killAll(): void;
+  subscribeTerminalsChanged(listener: TerminalsChangedListener): () => void;
 }

 export function createTerminalManager(): TerminalManager {
  const terminalsByCwd = new Map<string, TerminalSession[]>();
  const terminalsById = new Map<string, TerminalSession>();
  const terminalExitUnsubscribeById = new Map<string, () => void>();
+  const terminalsChangedListeners = new Set<TerminalsChangedListener>();

  function assertAbsolutePath(cwd: string): void {
    if (!cwd.startsWith("/")) {
@@ -48,6 +63,8 @@ export function createTerminalManager(): TerminalManager {
    if (options.kill) {
      session.kill();
    }
+
+    emitTerminalsChanged({ cwd: session.cwd });
  }

  function registerSession(session: TerminalSession): TerminalSession {
@@ -59,6 +76,36 @@ export function createTerminalManager(): TerminalManager {
    return session;
  }

+  function toTerminalListItem(input: { session: TerminalSession }): TerminalListItem {
+    return {
+      id: input.session.id,
+      name: input.session.name,
+      cwd: input.session.cwd,
+    };
+  }
+
+  function emitTerminalsChanged(input: { cwd: string }): void {
+    if (terminalsChangedListeners.size === 0) {
+      return;
+    }
+
+    const terminals = (terminalsByCwd.get(input.cwd) ?? []).map((session) =>
+      toTerminalListItem({ session })
+    );
+    const event: TerminalsChangedEvent = {
+      cwd: input.cwd,
+      terminals,
+    };
+
+    for (const listener of terminalsChangedListeners) {
+      try {
+        listener(event);
+      } catch {
+        // no-op
+      }
+    }
+  }
+
  return {
    async getTerminals(cwd: string): Promise<TerminalSession[]> {
      assertAbsolutePath(cwd);
@@ -70,6 +117,7 @@ export function createTerminalManager(): TerminalManager {
        );
        terminals = [session];
        terminalsByCwd.set(cwd, terminals);
+        emitTerminalsChanged({ cwd });
      }
      return terminals;
    },
@@ -88,6 +136,7 @@ export function createTerminalManager(): TerminalManager {

      terminals.push(session);
      terminalsByCwd.set(options.cwd, terminals);
+      emitTerminalsChanged({ cwd: options.cwd });

      return session;
    },
@@ -109,5 +158,12 @@ export function createTerminalManager(): TerminalManager {
        removeSessionById(id, { kill: true });
      }
    },
+
+    subscribeTerminalsChanged(listener: TerminalsChangedListener): () => void {
+      terminalsChangedListeners.add(listener);
+      return () => {
+        terminalsChangedListeners.delete(listener);
+      };
+    },
  };
 }
--- a/packages/server/src/utils/worktree.test.ts
+++ b/packages/server/src/utils/worktree.test.ts
@@ -5,6 +5,8 @@ import {
  getWorktreeTerminalSpecs,
  isPaseoOwnedWorktreeCwd,
  listPaseoWorktrees,
+  type WorktreeSetupCommandProgressEvent,
+  runWorktreeSetupCommands,
  slugify,
 } from "./worktree";
 import { getPaseoWorktreeMetadataPath } from "./worktree-metadata.js";
@@ -233,6 +235,36 @@ describe("createWorktree", () => {
    expect(existsSync(join(result.worktreePath, "setup.log"))).toBe(false);
  });

+  it("streams setup command progress events while commands are executing", async () => {
+    const paseoConfig = {
+      worktree: {
+        setup: [
+          'echo "first line"; echo "second line" 1>&2',
+        ],
+      },
+    };
+    writeFileSync(join(repoDir, "paseo.json"), JSON.stringify(paseoConfig));
+    execSync(
+      "git add paseo.json && git -c commit.gpgsign=false commit -m 'add streaming setup'",
+      { cwd: repoDir }
+    );
+
+    const progressEvents: WorktreeSetupCommandProgressEvent[] = [];
+    const results = await runWorktreeSetupCommands({
+      worktreePath: repoDir,
+      branchName: "main",
+      cleanupOnFailure: false,
+      onEvent: (event) => {
+        progressEvents.push(event);
+      },
+    });
+
+    expect(results).toHaveLength(1);
+    expect(progressEvents.some((event) => event.type === "command_started")).toBe(true);
+    expect(progressEvents.some((event) => event.type === "output")).toBe(true);
+    expect(progressEvents.some((event) => event.type === "command_completed")).toBe(true);
+  });
+
  it("cleans up worktree if setup command fails", async () => {
    // Create paseo.json with failing setup command
    const paseoConfig = {
--- a/packages/server/src/utils/worktree.ts
+++ b/packages/server/src/utils/worktree.ts
@@ -1,4 +1,4 @@
-import { exec } from "child_process";
+import { exec, spawn } from "child_process";
 import { promisify } from "util";
 import { existsSync, mkdirSync, readFileSync, realpathSync, rmSync } from "fs";
 import { join, basename, dirname, resolve, sep } from "path";
@@ -32,8 +32,38 @@ export type WorktreeSetupCommandResult = {
  stdout: string;
  stderr: string;
  exitCode: number | null;
+  durationMs: number;
 };

+export type WorktreeSetupCommandProgressEvent =
+  | {
+      type: "command_started";
+      index: number;
+      total: number;
+      command: string;
+      cwd: string;
+    }
+  | {
+      type: "output";
+      index: number;
+      total: number;
+      command: string;
+      cwd: string;
+      stream: "stdout" | "stderr";
+      chunk: string;
+    }
+  | {
+      type: "command_completed";
+      index: number;
+      total: number;
+      command: string;
+      cwd: string;
+      exitCode: number | null;
+      durationMs: number;
+      stdout: string;
+      stderr: string;
+    };
+
 export interface WorktreeTerminalConfig {
  name?: string;
  command: string;
@@ -153,6 +183,7 @@ async function execSetupCommand(
  command: string,
  options: { cwd: string; env: NodeJS.ProcessEnv }
 ): Promise<WorktreeSetupCommandResult> {
+  const startedAt = Date.now();
  try {
    const { stdout, stderr } = await execAsync(command, {
      cwd: options.cwd,
@@ -165,6 +196,7 @@ async function execSetupCommand(
      stdout: stdout ?? "",
      stderr: stderr ?? "",
      exitCode: 0,
+      durationMs: Date.now() - startedAt,
    };
  } catch (error: any) {
    return {
@@ -175,10 +207,105 @@ async function execSetupCommand(
        error?.stderr ??
        (error instanceof Error ? error.message : String(error)),
      exitCode: typeof error?.code === "number" ? error.code : null,
+      durationMs: Date.now() - startedAt,
    };
  }
 }

+async function execSetupCommandStreamed(options: {
+  command: string;
+  cwd: string;
+  env: NodeJS.ProcessEnv;
+  index: number;
+  total: number;
+  onEvent?: (event: WorktreeSetupCommandProgressEvent) => void;
+}): Promise<WorktreeSetupCommandResult> {
+  return new Promise((resolve) => {
+    const startedAt = Date.now();
+    const stdoutChunks: string[] = [];
+    const stderrChunks: string[] = [];
+    let settled = false;
+
+    const finish = (exitCode: number | null) => {
+      if (settled) {
+        return;
+      }
+      settled = true;
+      const result: WorktreeSetupCommandResult = {
+        command: options.command,
+        cwd: options.cwd,
+        stdout: stdoutChunks.join(""),
+        stderr: stderrChunks.join(""),
+        exitCode,
+        durationMs: Date.now() - startedAt,
+      };
+      options.onEvent?.({
+        type: "command_completed",
+        index: options.index,
+        total: options.total,
+        command: options.command,
+        cwd: options.cwd,
+        exitCode: result.exitCode,
+        durationMs: result.durationMs,
+        stdout: result.stdout,
+        stderr: result.stderr,
+      });
+      resolve(result);
+    };
+
+    options.onEvent?.({
+      type: "command_started",
+      index: options.index,
+      total: options.total,
+      command: options.command,
+      cwd: options.cwd,
+    });
+
+    const child = spawn("/bin/bash", ["-lc", options.command], {
+      cwd: options.cwd,
+      env: options.env,
+      stdio: ["ignore", "pipe", "pipe"],
+    });
+
+    child.stdout?.on("data", (chunk: Buffer | string) => {
+      const text = chunk.toString();
+      stdoutChunks.push(text);
+      options.onEvent?.({
+        type: "output",
+        index: options.index,
+        total: options.total,
+        command: options.command,
+        cwd: options.cwd,
+        stream: "stdout",
+        chunk: text,
+      });
+    });
+
+    child.stderr?.on("data", (chunk: Buffer | string) => {
+      const text = chunk.toString();
+      stderrChunks.push(text);
+      options.onEvent?.({
+        type: "output",
+        index: options.index,
+        total: options.total,
+        command: options.command,
+        cwd: options.cwd,
+        stream: "stderr",
+        chunk: text,
+      });
+    });
+
+    child.on("error", (error) => {
+      stderrChunks.push(error instanceof Error ? error.message : String(error));
+      finish(null);
+    });
+
+    child.on("close", (code) => {
+      finish(typeof code === "number" ? code : null);
+    });
+  });
+}
+
 async function getAvailablePort(): Promise<number> {
  return new Promise((resolve, reject) => {
    const server = net.createServer();
@@ -233,6 +360,7 @@ export async function runWorktreeSetupCommands(options: {
  branchName: string;
  cleanupOnFailure: boolean;
  repoRootPath?: string;
+  onEvent?: (event: WorktreeSetupCommandProgressEvent) => void;
 }): Promise<WorktreeSetupCommandResult[]> {
  // Read paseo.json from the worktree (it will have the same content as the source repo)
  const setupCommands = getWorktreeSetupCommands(options.worktreePath);
@@ -258,11 +386,20 @@ export async function runWorktreeSetupCommands(options: {
  };

  const results: WorktreeSetupCommandResult[] = [];
-  for (const cmd of setupCommands) {
-    const result = await execSetupCommand(cmd, {
-      cwd: options.worktreePath,
-      env: setupEnv,
-    });
+  for (const [index, cmd] of setupCommands.entries()) {
+    const result = options.onEvent
+      ? await execSetupCommandStreamed({
+          command: cmd,
+          cwd: options.worktreePath,
+          env: setupEnv,
+          index: index + 1,
+          total: setupCommands.length,
+          onEvent: options.onEvent,
+        })
+      : await execSetupCommand(cmd, {
+          cwd: options.worktreePath,
+          env: setupEnv,
+        });
    results.push(result);

    if (result.exitCode !== 0) {