diff --git a/packages/app/src/components/terminal-pane.tsx b/packages/app/src/components/terminal-pane.tsx
index 6f411a13e..2f29959cc 100644
--- a/packages/app/src/components/terminal-pane.tsx
+++ b/packages/app/src/components/terminal-pane.tsx
@@ -216,7 +216,7 @@ export function TerminalPane({
       if (terminalIdRef.current === exitedTerminalId) {
         emulatorRef.current?.clear();
       }
-      streamControllerRef.current?.handleStreamExit({
+      streamControllerRef.current?.handleTerminalExit({
         terminalId: exitedTerminalId,
       });
       setModifiers({ ...EMPTY_MODIFIERS });
diff --git a/packages/app/src/screens/workspace/workspace-screen.tsx b/packages/app/src/screens/workspace/workspace-screen.tsx
index 0f67f66fc..d3c5e1c88 100644
--- a/packages/app/src/screens/workspace/workspace-screen.tsx
+++ b/packages/app/src/screens/workspace/workspace-screen.tsx
@@ -609,17 +609,10 @@ function WorkspaceScreenContent({ serverId, workspaceId }: WorkspaceScreenProps)
       }));
     });
 
-    const unsubscribeStreamExit = client.on("terminal_stream_exit", (message) => {
-      if (message.type !== "terminal_stream_exit") {
-        return;
-      }
-    });
-
     client.subscribeTerminals({ cwd: normalizedWorkspaceId });
 
     return () => {
       unsubscribeChanged();
-      unsubscribeStreamExit();
       client.unsubscribeTerminals({ cwd: normalizedWorkspaceId });
     };
   }, [client, isConnected, normalizedWorkspaceId, queryClient, terminalsQueryKey]);
diff --git a/packages/app/src/terminal/runtime/terminal-stream-controller.test.ts b/packages/app/src/terminal/runtime/terminal-stream-controller.test.ts
index 34543b97f..541481b6d 100644
--- a/packages/app/src/terminal/runtime/terminal-stream-controller.test.ts
+++ b/packages/app/src/terminal/runtime/terminal-stream-controller.test.ts
@@ -6,44 +6,32 @@ import {
   type TerminalStreamControllerStatus,
 } from "./terminal-stream-controller";
 
+type TerminalSnapshot = {
+  rows: number;
+  cols: number;
+  grid: Array<Array<{ char: string }>>;
+  scrollback: Array<Array<{ char: string }>>;
+  cursor: { row: number; col: number };
+};
+
 type TerminalStreamEvent =
   | { terminalId: string; type: "output"; data: Uint8Array }
-  | {
-      terminalId: string;
-      type: "snapshot";
-      state: {
-        rows: number;
-        cols: number;
-        grid: Array<Array<{ char: string }>>;
-        scrollback: Array<Array<{ char: string }>>;
-        cursor: { row: number; col: number };
-      };
-    };
+  | { terminalId: string; type: "snapshot"; state: TerminalSnapshot };
 
 class FakeTerminalStreamClient implements TerminalStreamControllerClient {
   private readonly listeners = new Set<(event: TerminalStreamEvent) => void>();
   public subscribeCalls: string[] = [];
   public unsubscribeCalls: string[] = [];
   public resizeCalls: Array<{ terminalId: string; rows: number; cols: number }> = [];
-  public nextSubscribeResponses: Array<{
-    terminalId: string;
-    state: {
-      rows: number;
-      cols: number;
-      grid: Array<Array<{ char: string }>>;
-      scrollback: Array<Array<{ char: string }>>;
-      cursor: { row: number; col: number };
-    } | null;
-    error?: string | null;
-  }> = [];
+  public nextSubscribeResults: Array<{ terminalId: string; error?: string | null }> = [];
 
   async subscribeTerminal(terminalId: string) {
     this.subscribeCalls.push(terminalId);
-    const response = this.nextSubscribeResponses.shift();
-    if (!response) {
-      throw new Error("Missing fake subscribe response");
+    const result = this.nextSubscribeResults.shift();
+    if (!result) {
+      throw new Error("Missing fake subscribe result");
     }
-    return response;
+    return result;
   }
 
   unsubscribeTerminal(terminalId: string): void {
@@ -54,11 +42,7 @@ class FakeTerminalStreamClient implements TerminalStreamControllerClient {
     terminalId: string,
     message: { type: "resize"; rows: number; cols: number },
   ): void {
-    this.resizeCalls.push({
-      terminalId,
-      rows: message.rows,
-      cols: message.cols,
-    });
+    this.resizeCalls.push({ terminalId, rows: message.rows, cols: message.cols });
   }
 
   onTerminalStreamEvent(handler: (event: TerminalStreamEvent) => void): () => void {
@@ -75,65 +59,40 @@ class FakeTerminalStreamClient implements TerminalStreamControllerClient {
   }
 }
 
-function createControllerHarness(input?: {
-  client?: FakeTerminalStreamClient;
-}): {
-  client: FakeTerminalStreamClient;
-  outputs: Array<{ terminalId: string; text: string }>;
-  snapshots: Array<{ terminalId: string; text: string }>;
-  statuses: TerminalStreamControllerStatus[];
-  controller: TerminalStreamController;
-} {
+function createHarness(input?: { client?: FakeTerminalStreamClient }) {
   const client = input?.client ?? new FakeTerminalStreamClient();
   const outputs: Array<{ terminalId: string; text: string }> = [];
   const snapshots: Array<{ terminalId: string; text: string }> = [];
   const statuses: TerminalStreamControllerStatus[] = [];
-
   const controller = new TerminalStreamController({
     client,
     getPreferredSize: () => ({ rows: 24, cols: 80 }),
-    onOutput: ({ terminalId, text }) => {
-      outputs.push({ terminalId, text });
+    onOutput: (output) => {
+      outputs.push(output);
     },
     onSnapshot: ({ terminalId, state }) => {
       snapshots.push({
         terminalId,
-        text: state.grid
-          .map((row) => row.map((cell) => cell.char).join(""))
-          .join("\n"),
+        text: state.grid.map((row) => row.map((cell) => cell.char).join("")).join("\n"),
       });
     },
     onStatusChange: (status) => {
       statuses.push(status);
     },
-    waitForDelay: async () => {},
   });
 
-  return {
-    client,
-    outputs,
-    snapshots,
-    statuses,
-    controller,
-  };
+  return { client, controller, outputs, snapshots, statuses };
 }
 
 async function flushAsyncWork(): Promise<void> {
   await Promise.resolve();
-  await new Promise<void>((resolve) => {
-    setTimeout(() => resolve(), 0);
-  });
   await Promise.resolve();
 }
 
 describe("terminal-stream-controller", () => {
-  it("subscribes to a terminal, resizes it, and forwards snapshot/output events", async () => {
-    const harness = createControllerHarness();
-    harness.client.nextSubscribeResponses.push({
-      terminalId: "term-1",
-      state: null,
-      error: null,
-    });
+  it("subscribes, resizes, and forwards snapshot/output events", async () => {
+    const harness = createHarness();
+    harness.client.nextSubscribeResults.push({ terminalId: "term-1", error: null });
 
     harness.controller.setTerminal({ terminalId: "term-1" });
     await flushAsyncWork();
@@ -166,76 +125,50 @@ describe("terminal-stream-controller", () => {
     });
   });
 
-  it("retries retryable subscribe failures and then attaches", async () => {
-    const harness = createControllerHarness();
-    harness.client.nextSubscribeResponses.push({
+  it("surfaces subscribe failures without retrying", async () => {
+    const harness = createHarness();
+    harness.client.nextSubscribeResults.push({
       terminalId: "term-1",
-      state: null,
       error: "network disconnected",
     });
-    harness.client.nextSubscribeResponses.push({
-      terminalId: "term-1",
-      state: null,
-      error: null,
-    });
 
     harness.controller.setTerminal({ terminalId: "term-1" });
     await flushAsyncWork();
 
-    expect(harness.client.subscribeCalls).toEqual(["term-1", "term-1"]);
+    expect(harness.client.subscribeCalls).toEqual(["term-1"]);
     expect(harness.statuses.at(-1)).toEqual({
       terminalId: "term-1",
       isAttaching: false,
-      error: null,
+      error: "network disconnected",
     });
   });
 
-  it("reconnects to the selected terminal when the stream exits", async () => {
-    const harness = createControllerHarness();
-    harness.client.nextSubscribeResponses.push({
-      terminalId: "term-1",
-      state: null,
-      error: null,
-    });
-    harness.client.nextSubscribeResponses.push({
-      terminalId: "term-1",
-      state: null,
-      error: null,
-    });
+  it("treats terminal exit as final and does not reconnect", async () => {
+    const harness = createHarness();
+    harness.client.nextSubscribeResults.push({ terminalId: "term-1", error: null });
 
     harness.controller.setTerminal({ terminalId: "term-1" });
     await flushAsyncWork();
-
-    harness.controller.handleStreamExit({ terminalId: "term-1" });
+    harness.controller.handleTerminalExit({ terminalId: "term-1" });
     await flushAsyncWork();
 
-    expect(harness.client.subscribeCalls).toEqual(["term-1", "term-1"]);
+    expect(harness.client.subscribeCalls).toEqual(["term-1"]);
     expect(harness.statuses.at(-1)).toEqual({
       terminalId: "term-1",
       isAttaching: false,
-      error: null,
+      error: "Terminal exited",
     });
   });
 
   it("unsubscribes when switching terminals and on dispose", async () => {
-    const harness = createControllerHarness();
-    harness.client.nextSubscribeResponses.push({
-      terminalId: "term-1",
-      state: null,
-      error: null,
-    });
-    harness.client.nextSubscribeResponses.push({
-      terminalId: "term-2",
-      state: null,
-      error: null,
-    });
+    const harness = createHarness();
+    harness.client.nextSubscribeResults.push({ terminalId: "term-1", error: null });
+    harness.client.nextSubscribeResults.push({ terminalId: "term-2", error: null });
 
     harness.controller.setTerminal({ terminalId: "term-1" });
     await flushAsyncWork();
-
     harness.controller.setTerminal({ terminalId: "term-2" });
     await flushAsyncWork();
-
     harness.controller.dispose();
 
     expect(harness.client.unsubscribeCalls).toEqual(["term-1", "term-2"]);
diff --git a/packages/app/src/terminal/runtime/terminal-stream-controller.ts b/packages/app/src/terminal/runtime/terminal-stream-controller.ts
index 7e2f9e025..b5978b64c 100644
--- a/packages/app/src/terminal/runtime/terminal-stream-controller.ts
+++ b/packages/app/src/terminal/runtime/terminal-stream-controller.ts
@@ -1,15 +1,8 @@
 import type { TerminalState } from "@server/shared/messages";
-import {
-  getTerminalAttachRetryDelayMs,
-  isTerminalAttachRetryableError,
-  waitForDuration,
-  withPromiseTimeout,
-} from "@/utils/terminal-attach";
 
 export type TerminalStreamControllerClient = {
   subscribeTerminal: (terminalId: string) => Promise<{
     terminalId: string;
-    state: TerminalState | null;
     error?: string | null;
   }>;
   unsubscribeTerminal: (terminalId: string) => void;
@@ -43,227 +36,116 @@ export type TerminalStreamControllerOptions = {
   onOutput: (input: { terminalId: string; text: string }) => void;
   onSnapshot: (input: { terminalId: string; state: TerminalState }) => void;
   onStatusChange?: (status: TerminalStreamControllerStatus) => void;
-  maxAttachAttempts?: number;
-  attachTimeoutMs?: number;
-  reconnectErrorMessage?: string;
-  withTimeout?: <T>(input: {
-    promise: Promise<T>;
-    timeoutMs: number;
-    timeoutMessage: string;
-  }) => Promise<T>;
-  waitForDelay?: (input: { durationMs: number }) => Promise<void>;
-  isRetryableError?: (input: { message: string }) => boolean;
-  getRetryDelayMs?: (input: { attempt: number }) => number;
 };
 
-const DEFAULT_ATTACH_MAX_ATTEMPTS = 4;
-const DEFAULT_ATTACH_TIMEOUT_MS = 12_000;
-const DEFAULT_RECONNECT_ERROR_MESSAGE = "Terminal stream ended. Reconnecting…";
+const TERMINAL_EXITED_ERROR = "Terminal exited";
 
 export class TerminalStreamController {
-  private readonly unsubscribeStreamEvents: () => void;
   private readonly decoder = new TextDecoder();
-  private selectedTerminalId: string | null = null;
-  private attachGeneration = 0;
-  private isDisposed = false;
+  private readonly unsubscribeStreamEvents: () => void;
+  private terminalId: string | null = null;
+  private disposed = false;
 
   constructor(private readonly options: TerminalStreamControllerOptions) {
     this.unsubscribeStreamEvents = this.options.client.onTerminalStreamEvent((event) => {
-      if (this.isDisposed || event.terminalId !== this.selectedTerminalId) {
+      if (this.disposed || event.terminalId !== this.terminalId) {
         return;
       }
       if (event.type === "snapshot") {
         this.decoder.decode();
-        this.options.onSnapshot({
-          terminalId: event.terminalId,
-          state: event.state,
-        });
+        this.options.onSnapshot({ terminalId: event.terminalId, state: event.state });
         return;
       }
-
       const text = this.decoder.decode(event.data, { stream: true });
-      if (text.length === 0) {
-        return;
+      if (text.length > 0) {
+        this.options.onOutput({ terminalId: event.terminalId, text });
       }
-      this.options.onOutput({
-        terminalId: event.terminalId,
-        text,
-      });
     });
   }
 
   setTerminal(input: { terminalId: string | null }): void {
-    if (this.isDisposed) {
+    if (this.disposed || input.terminalId === this.terminalId) {
       return;
     }
-
     const nextTerminalId = input.terminalId;
-    if (this.selectedTerminalId === nextTerminalId) {
-      return;
-    }
-
-    const previousTerminalId = this.selectedTerminalId;
-    this.selectedTerminalId = nextTerminalId;
-    this.attachGeneration += 1;
-    const generation = this.attachGeneration;
-
+    const previousTerminalId = this.terminalId;
+    this.terminalId = nextTerminalId;
     this.decoder.decode();
     if (previousTerminalId) {
       this.options.client.unsubscribeTerminal(previousTerminalId);
     }
-
     if (!nextTerminalId) {
-      this.updateStatus({
-        terminalId: null,
-        isAttaching: false,
-        error: null,
-      });
+      this.options.onStatusChange?.({ terminalId: null, isAttaching: false, error: null });
       return;
     }
-
-    this.updateStatus({
-      terminalId: nextTerminalId,
-      isAttaching: true,
-      error: null,
-    });
-    void this.attachTerminal({
-      terminalId: nextTerminalId,
-      generation,
-    });
-  }
-
-  handleStreamExit(input: { terminalId: string }): void {
-    if (this.isDisposed || this.selectedTerminalId !== input.terminalId) {
-      return;
-    }
-
-    this.attachGeneration += 1;
-    const generation = this.attachGeneration;
-    this.decoder.decode();
-    this.updateStatus({
-      terminalId: input.terminalId,
-      isAttaching: true,
-      error: this.options.reconnectErrorMessage ?? DEFAULT_RECONNECT_ERROR_MESSAGE,
-    });
-    void this.attachTerminal({
-      terminalId: input.terminalId,
-      generation,
-    });
-  }
-
-  dispose(): void {
-    if (this.isDisposed) {
-      return;
-    }
-    this.isDisposed = true;
-    this.attachGeneration += 1;
-    this.decoder.decode();
-    const selectedTerminalId = this.selectedTerminalId;
-    this.selectedTerminalId = null;
-    if (selectedTerminalId) {
-      this.options.client.unsubscribeTerminal(selectedTerminalId);
-    }
-    this.unsubscribeStreamEvents();
-    this.updateStatus({
-      terminalId: null,
-      isAttaching: false,
-      error: null,
-    });
-  }
-
-  private async attachTerminal(input: { terminalId: string; generation: number }): Promise<void> {
-    const {
-      maxAttachAttempts = DEFAULT_ATTACH_MAX_ATTEMPTS,
-      attachTimeoutMs = DEFAULT_ATTACH_TIMEOUT_MS,
-      withTimeout = withPromiseTimeout,
-      waitForDelay = waitForDuration,
-      isRetryableError = isTerminalAttachRetryableError,
-      getRetryDelayMs = getTerminalAttachRetryDelayMs,
-    } = this.options;
-
-    let lastErrorMessage = "Unable to subscribe to terminal";
-
-    for (let attempt = 0; attempt < maxAttachAttempts; attempt += 1) {
-      if (!this.isAttachGenerationCurrent(input)) {
-        return;
-      }
-
-      try {
-        const payload = await withTimeout({
-          promise: this.options.client.subscribeTerminal(input.terminalId),
-          timeoutMs: attachTimeoutMs,
-          timeoutMessage: "Timed out subscribing to terminal",
-        });
-
-        if (!this.isAttachGenerationCurrent(input)) {
-          this.options.client.unsubscribeTerminal(input.terminalId);
+    this.options.onStatusChange?.({ terminalId: nextTerminalId, isAttaching: true, error: null });
+    void this.options.client
+      .subscribeTerminal(nextTerminalId)
+      .then((payload) => {
+        if (this.disposed || this.terminalId !== nextTerminalId) {
           return;
         }
-
         if (payload.error) {
-          lastErrorMessage = payload.error;
-          const hasRemainingAttempts = attempt < maxAttachAttempts - 1;
-          if (hasRemainingAttempts && isRetryableError({ message: lastErrorMessage })) {
-            await waitForDelay({ durationMs: getRetryDelayMs({ attempt }) });
-            continue;
-          }
-
-          this.updateStatus({
-            terminalId: input.terminalId,
+          this.terminalId = null;
+          this.options.onStatusChange?.({
+            terminalId: nextTerminalId,
             isAttaching: false,
-            error: lastErrorMessage,
+            error: payload.error,
           });
           return;
         }
-
         const preferredSize = this.options.getPreferredSize();
         if (preferredSize) {
-          this.options.client.sendTerminalInput(input.terminalId, {
+          this.options.client.sendTerminalInput(nextTerminalId, {
             type: "resize",
             rows: preferredSize.rows,
             cols: preferredSize.cols,
           });
         }
-
-        this.updateStatus({
-          terminalId: input.terminalId,
+        this.options.onStatusChange?.({
+          terminalId: nextTerminalId,
           isAttaching: false,
           error: null,
         });
-        return;
-      } catch (error) {
-        lastErrorMessage =
-          error instanceof Error ? error.message : "Unable to subscribe to terminal";
-        const hasRemainingAttempts = attempt < maxAttachAttempts - 1;
-        if (hasRemainingAttempts && isRetryableError({ message: lastErrorMessage })) {
-          await waitForDelay({ durationMs: getRetryDelayMs({ attempt }) });
-          continue;
+      })
+      .catch((error: unknown) => {
+        if (this.disposed || this.terminalId !== nextTerminalId) {
+          return;
         }
-
-        this.updateStatus({
-          terminalId: input.terminalId,
+        this.terminalId = null;
+        this.options.onStatusChange?.({
+          terminalId: nextTerminalId,
           isAttaching: false,
-          error: lastErrorMessage,
+          error: error instanceof Error ? error.message : "Unable to subscribe to terminal",
         });
-        return;
-      }
-    }
+      });
+  }
 
-    this.updateStatus({
+  handleTerminalExit(input: { terminalId: string }): void {
+    if (this.disposed || input.terminalId !== this.terminalId) {
+      return;
+    }
+    this.decoder.decode();
+    this.terminalId = null;
+    this.options.onStatusChange?.({
       terminalId: input.terminalId,
       isAttaching: false,
-      error: lastErrorMessage,
+      error: TERMINAL_EXITED_ERROR,
     });
   }
 
-  private isAttachGenerationCurrent(input: { terminalId: string; generation: number }): boolean {
-    if (this.isDisposed) {
-      return false;
+  dispose(): void {
+    if (this.disposed) {
+      return;
     }
-    return this.attachGeneration === input.generation && this.selectedTerminalId === input.terminalId;
-  }
-
-  private updateStatus(status: TerminalStreamControllerStatus): void {
-    this.options.onStatusChange?.(status);
+    this.disposed = true;
+    this.decoder.decode();
+    const terminalId = this.terminalId;
+    this.terminalId = null;
+    if (terminalId) {
+      this.options.client.unsubscribeTerminal(terminalId);
+    }
+    this.unsubscribeStreamEvents();
+    this.options.onStatusChange?.({ terminalId: null, isAttaching: false, error: null });
   }
 }
diff --git a/packages/app/src/utils/terminal-attach.test.ts b/packages/app/src/utils/terminal-attach.test.ts
deleted file mode 100644
index ecdbff4c7..000000000
--- a/packages/app/src/utils/terminal-attach.test.ts
+++ /dev/null
@@ -1,50 +0,0 @@
-import { describe, expect, it } from "vitest";
-
-import {
-  getTerminalAttachRetryDelayMs,
-  isTerminalAttachRetryableError,
-  withPromiseTimeout,
-} from "./terminal-attach";
-
-describe("terminal-attach", () => {
-  it("computes bounded exponential retry delays", () => {
-    expect(getTerminalAttachRetryDelayMs({ attempt: 0 })).toBe(250);
-    expect(getTerminalAttachRetryDelayMs({ attempt: 1 })).toBe(500);
-    expect(getTerminalAttachRetryDelayMs({ attempt: 2 })).toBe(1_000);
-    expect(getTerminalAttachRetryDelayMs({ attempt: 3 })).toBe(2_000);
-    expect(getTerminalAttachRetryDelayMs({ attempt: 8 })).toBe(2_000);
-  });
-
-  it("matches retryable attach errors", () => {
-    expect(isTerminalAttachRetryableError({ message: "Terminal not found while attaching" })).toBe(
-      true,
-    );
-    expect(isTerminalAttachRetryableError({ message: "Network disconnected during attach" })).toBe(
-      true,
-    );
-    expect(isTerminalAttachRetryableError({ message: "stream ended before snapshot" })).toBe(
-      true,
-    );
-    expect(isTerminalAttachRetryableError({ message: "permission denied" })).toBe(false);
-  });
-
-  it("resolves before timeout when promise completes", async () => {
-    await expect(
-      withPromiseTimeout({
-        promise: Promise.resolve("ok"),
-        timeoutMs: 50,
-        timeoutMessage: "timed out",
-      }),
-    ).resolves.toBe("ok");
-  });
-
-  it("rejects when timeout wins", async () => {
-    await expect(
-      withPromiseTimeout({
-        promise: new Promise<string>(() => {}),
-        timeoutMs: 10,
-        timeoutMessage: "timed out",
-      }),
-    ).rejects.toThrow("timed out");
-  });
-});
diff --git a/packages/app/src/utils/terminal-attach.ts b/packages/app/src/utils/terminal-attach.ts
deleted file mode 100644
index 698aa0a30..000000000
--- a/packages/app/src/utils/terminal-attach.ts
+++ /dev/null
@@ -1,49 +0,0 @@
-const TERMINAL_ATTACH_RETRYABLE_ERROR_PATTERNS = [
-  "terminal not found",
-  "timed out",
-  "timeout",
-  "connection",
-  "network",
-  "disconnected",
-  "stream ended",
-] as const;
-
-export function getTerminalAttachRetryDelayMs(input: { attempt: number }): number {
-  const clampedAttempt = Math.max(0, input.attempt);
-  const exponentialDelay = 250 * 2 ** clampedAttempt;
-  return Math.min(2_000, exponentialDelay);
-}
-
-export function isTerminalAttachRetryableError(input: { message: string }): boolean {
-  const normalized = input.message.toLowerCase();
-  return TERMINAL_ATTACH_RETRYABLE_ERROR_PATTERNS.some((pattern) => normalized.includes(pattern));
-}
-
-export async function waitForDuration(input: { durationMs: number }): Promise<void> {
-  await new Promise<void>((resolve) => {
-    setTimeout(resolve, Math.max(0, input.durationMs));
-  });
-}
-
-export async function withPromiseTimeout<T>(input: {
-  promise: Promise<T>;
-  timeoutMs: number;
-  timeoutMessage: string;
-}): Promise<T> {
-  let timeoutHandle: ReturnType<typeof setTimeout> | null = null;
-  const timeoutPromise = new Promise<never>((_, reject) => {
-    timeoutHandle = setTimeout(
-      () => {
-        reject(new Error(input.timeoutMessage));
-      },
-      Math.max(0, input.timeoutMs),
-    );
-  });
-  try {
-    return await Promise.race([input.promise, timeoutPromise]);
-  } finally {
-    if (timeoutHandle) {
-      clearTimeout(timeoutHandle);
-    }
-  }
-}
diff --git a/packages/server/src/client/daemon-client.test.ts b/packages/server/src/client/daemon-client.test.ts
index 14399fc26..fa97e7461 100644
--- a/packages/server/src/client/daemon-client.test.ts
+++ b/packages/server/src/client/daemon-client.test.ts
@@ -1257,7 +1257,6 @@ describe("DaemonClient", () => {
         type: "subscribe_terminal_response",
         payload: {
           terminalId: "term-1",
-          state: null,
           error: null,
           requestId: "sub-1",
         },
@@ -1308,7 +1307,6 @@ describe("DaemonClient", () => {
         type: "subscribe_terminal_response",
         payload: {
           terminalId: "term-1",
-          state: null,
           error: null,
           requestId: "sub-2",
         },
@@ -1356,7 +1354,6 @@ describe("DaemonClient", () => {
         type: "subscribe_terminal_response",
         payload: {
           terminalId: "term-1",
-          state: null,
           error: null,
           requestId: "sub-3",
         },
@@ -1418,7 +1415,6 @@ describe("DaemonClient", () => {
         type: "subscribe_terminal_response",
         payload: {
           terminalId: "term-1",
-          state: null,
           error: null,
           requestId: "sub-4",
         },
diff --git a/packages/server/src/server/daemon-e2e/terminal.e2e.test.ts b/packages/server/src/server/daemon-e2e/terminal.e2e.test.ts
index 7961528de..9f259f09c 100644
--- a/packages/server/src/server/daemon-e2e/terminal.e2e.test.ts
+++ b/packages/server/src/server/daemon-e2e/terminal.e2e.test.ts
@@ -4,6 +4,11 @@ import { tmpdir } from "os";
 import path from "path";
 import WebSocket from "ws";
 import { DaemonClient } from "../../client/daemon-client.js";
+import {
+  WSOutboundMessageSchema,
+  type TerminalState,
+  type WSOutboundMessage,
+} from "../../shared/messages.js";
 import {
   decodeTerminalStreamFrame,
   TerminalStreamOpcode,
@@ -11,6 +16,8 @@ import {
 } from "../../shared/terminal-stream-protocol.js";
 import { createDaemonTestContext, type DaemonTestContext } from "../test-utils/index.js";
 
+type RawSessionEnvelope = Extract<WSOutboundMessage, { type: "session" }>;
+
 function tmpCwd(): string {
   return mkdtempSync(path.join(tmpdir(), "daemon-terminal-e2e-"));
 }
@@ -24,10 +31,7 @@ function createLogger() {
   };
 }
 
-function extractStateText(state: {
-  grid: Array<Array<{ char: string }>>;
-  scrollback: Array<Array<{ char: string }>>;
-}): string {
+function extractStateText(state: Pick<TerminalState, "grid" | "scrollback">): string {
   return [...state.scrollback, ...state.grid]
     .map((row) =>
       row
@@ -57,21 +61,9 @@ async function waitForCondition(
 async function waitForTerminalSnapshot(
   client: DaemonClient,
   terminalId: string,
-  predicate: (state: {
-    rows: number;
-    cols: number;
-    grid: Array<Array<{ char: string }>>;
-    scrollback: Array<Array<{ char: string }>>;
-    cursor: { row: number; col: number };
-  }) => boolean,
+  predicate: (state: TerminalState) => boolean,
   timeout = 10000,
-): Promise<{
-  rows: number;
-  cols: number;
-  grid: Array<Array<{ char: string }>>;
-  scrollback: Array<Array<{ char: string }>>;
-  cursor: { row: number; col: number };
-}> {
+): Promise<TerminalState> {
   return new Promise((resolve, reject) => {
     const timeoutHandle = setTimeout(() => {
       unsubscribe();
@@ -156,9 +148,7 @@ async function connectRawWebSocket(port: number): Promise<WebSocket> {
   const helloReady = waitForRawSessionMessage(
     ws,
     (message) =>
-      message.type === "session" &&
-      message.message?.type === "status" &&
-      message.message.payload?.status === "server_info",
+      message.message.type === "status" && message.message.payload.status === "server_info",
     10000,
   );
 
@@ -198,15 +188,9 @@ async function closeWebSocket(ws: WebSocket, timeout = 5000): Promise<void> {
 
 async function waitForRawSessionMessage(
   ws: WebSocket,
-  predicate: (message: {
-    type?: string;
-    message?: { type?: string; payload?: Record<string, any> };
-  }) => boolean,
+  predicate: (message: RawSessionEnvelope) => boolean,
   timeout = 10000,
-): Promise<{
-  type?: string;
-  message?: { type?: string; payload?: Record<string, any> };
-}> {
+): Promise<RawSessionEnvelope> {
   return new Promise((resolve, reject) => {
     const timeoutHandle = setTimeout(() => {
       cleanup();
@@ -220,10 +204,11 @@ async function waitForRawSessionMessage(
         return;
       }
       try {
-        const parsed = JSON.parse(text) as {
-          type?: string;
-          message?: { type?: string; payload?: Record<string, any> };
-        };
+        const parsedResult = WSOutboundMessageSchema.safeParse(JSON.parse(text));
+        if (!parsedResult.success || parsedResult.data.type !== "session") {
+          return;
+        }
+        const parsed = parsedResult.data;
         if (!predicate(parsed)) {
           return;
         }
@@ -294,9 +279,8 @@ async function subscribeRawTerminal(ws: WebSocket, terminalId: string, requestId
   const ready = waitForRawSessionMessage(
     ws,
     (message) =>
-      message.type === "session" &&
-      message.message?.type === "subscribe_terminal_response" &&
-      message.message.payload?.requestId === requestId,
+      message.message.type === "subscribe_terminal_response" &&
+      message.message.payload.requestId === requestId,
     10000,
   );
 
@@ -311,7 +295,11 @@ async function subscribeRawTerminal(ws: WebSocket, terminalId: string, requestId
     }),
   );
 
-  await ready;
+  const message = await ready;
+  if (message.message.type !== "subscribe_terminal_response") {
+    throw new Error("Expected subscribe_terminal_response");
+  }
+  expect(message.message.payload).not.toHaveProperty("state");
 }
 
 describe("daemon E2E terminal", () => {
diff --git a/packages/server/src/server/session.ts b/packages/server/src/server/session.ts
index aecdbba87..a5db8da24 100644
--- a/packages/server/src/server/session.ts
+++ b/packages/server/src/server/session.ts
@@ -279,8 +279,7 @@ type ActiveTerminalStream = {
   terminalId: string;
   unsubscribe: () => void;
   needsSnapshot: boolean;
-  primed: boolean;
-  snapshotTimer: ReturnType<typeof setTimeout> | null;
+  snapshotRetryTimer: ReturnType<typeof setTimeout> | null;
 };
 
 export type SessionRuntimeMetrics = {
@@ -1817,8 +1816,8 @@ export class Session {
         if (!resize) {
           return;
         }
+        activeStream.needsSnapshot = true;
         terminal.send({ type: "resize", rows: resize.rows, cols: resize.cols });
-        this.queueTerminalSnapshot(activeStream, terminal);
         return;
       }
 
@@ -7666,7 +7665,6 @@ export class Session {
         type: "subscribe_terminal_response",
         payload: {
           terminalId: msg.terminalId,
-          state: null,
           error: "Terminal manager not available",
           requestId: msg.requestId,
         },
@@ -7680,7 +7678,6 @@ export class Session {
         type: "subscribe_terminal_response",
         payload: {
           terminalId: msg.terminalId,
-          state: null,
           error: "Terminal not found",
           requestId: msg.requestId,
         },
@@ -7689,23 +7686,16 @@ export class Session {
     }
     this.ensureTerminalExitSubscription(session);
 
-    const activeStream = this.bindActiveTerminalStream(session);
-
-    // Send initial state
     this.emit({
       type: "subscribe_terminal_response",
       payload: {
         terminalId: msg.terminalId,
-        state: session.getState(),
         error: null,
         requestId: msg.requestId,
       },
     });
 
-    if (activeStream) {
-      this.sendTerminalSnapshot(activeStream, session);
-      activeStream.primed = true;
-    }
+    this.bindActiveTerminalStream(session);
   }
 
   private handleUnsubscribeTerminalRequest(msg: UnsubscribeTerminalRequest): void {
@@ -7803,126 +7793,77 @@ export class Session {
     const activeStream: ActiveTerminalStream = {
       terminalId: terminal.id,
       unsubscribe: () => {},
-      needsSnapshot: false,
-      primed: false,
-      snapshotTimer: null,
+      needsSnapshot: true,
+      snapshotRetryTimer: null,
     };
+
+    const trySendSnapshot = () => {
+      if (this.activeTerminalStream !== activeStream || !activeStream.needsSnapshot) {
+        return;
+      }
+      if (this.getCurrentBinaryBufferedAmount() > TERMINAL_STREAM_LOW_WATER_BYTES) {
+        if (!activeStream.snapshotRetryTimer) {
+          activeStream.snapshotRetryTimer = setTimeout(() => {
+            activeStream.snapshotRetryTimer = null;
+            trySendSnapshot();
+          }, 33);
+        }
+        return;
+      }
+      if (activeStream.snapshotRetryTimer) {
+        clearTimeout(activeStream.snapshotRetryTimer);
+        activeStream.snapshotRetryTimer = null;
+      }
+      activeStream.needsSnapshot = false;
+      this.emitBinary(
+        encodeTerminalStreamFrame({
+          opcode: TerminalStreamOpcode.Snapshot,
+          payload: encodeTerminalSnapshotPayload(terminal.getState()),
+        }),
+      );
+    };
+
     activeStream.unsubscribe = terminal.subscribe((message) => {
       if (this.activeTerminalStream !== activeStream) {
         return;
       }
-      if (message.type === "output") {
-        this.handleActiveTerminalOutput(activeStream, terminal, message.data);
+      if (message.type === "snapshot") {
+        trySendSnapshot();
         return;
       }
-      if (message.type === "snapshot") {
-        this.maybeSendQueuedTerminalSnapshot(activeStream, terminal);
+      if (activeStream.needsSnapshot || message.data.length === 0) {
+        return;
+      }
+      if (this.getCurrentBinaryBufferedAmount() >= TERMINAL_STREAM_HIGH_WATER_BYTES) {
+        activeStream.needsSnapshot = true;
+        trySendSnapshot();
+        return;
+      }
+      this.emitBinary(
+        encodeTerminalStreamFrame({
+          opcode: TerminalStreamOpcode.Output,
+          payload: new Uint8Array(Buffer.from(message.data, "utf8")),
+        }),
+      );
+      if (this.getCurrentBinaryBufferedAmount() >= TERMINAL_STREAM_HIGH_WATER_BYTES) {
+        activeStream.needsSnapshot = true;
+        trySendSnapshot();
       }
     });
     this.activeTerminalStream = activeStream;
     return activeStream;
   }
 
-  private handleActiveTerminalOutput(
-    activeStream: ActiveTerminalStream,
-    terminal: TerminalSession,
-    data: string,
-  ): void {
-    if (!activeStream.primed || data.length === 0) {
-      return;
-    }
-    if (activeStream.needsSnapshot) {
-      this.maybeSendQueuedTerminalSnapshot(activeStream, terminal);
-      return;
-    }
-    if (this.getCurrentBinaryBufferedAmount() > TERMINAL_STREAM_HIGH_WATER_BYTES) {
-      activeStream.needsSnapshot = true;
-      this.scheduleTerminalSnapshotRetry(activeStream, terminal);
-      return;
-    }
-    this.emitBinary(
-      encodeTerminalStreamFrame({
-        opcode: TerminalStreamOpcode.Output,
-        payload: new Uint8Array(Buffer.from(data, "utf8")),
-      }),
-    );
-    if (this.getCurrentBinaryBufferedAmount() > TERMINAL_STREAM_HIGH_WATER_BYTES) {
-      activeStream.needsSnapshot = true;
-      this.scheduleTerminalSnapshotRetry(activeStream, terminal);
-    }
-  }
-
-  private queueTerminalSnapshot(
-    activeStream: ActiveTerminalStream,
-    terminal: TerminalSession,
-  ): void {
-    if (this.getCurrentBinaryBufferedAmount() > TERMINAL_STREAM_HIGH_WATER_BYTES) {
-      activeStream.needsSnapshot = true;
-      this.scheduleTerminalSnapshotRetry(activeStream, terminal);
-      return;
-    }
-    this.sendTerminalSnapshot(activeStream, terminal);
-  }
-
-  private maybeSendQueuedTerminalSnapshot(
-    activeStream: ActiveTerminalStream,
-    terminal: TerminalSession,
-  ): void {
-    if (!activeStream.needsSnapshot) {
-      return;
-    }
-    if (this.getCurrentBinaryBufferedAmount() >= TERMINAL_STREAM_LOW_WATER_BYTES) {
-      this.scheduleTerminalSnapshotRetry(activeStream, terminal);
-      return;
-    }
-    this.sendTerminalSnapshot(activeStream, terminal);
-  }
-
-  private sendTerminalSnapshot(
-    activeStream: ActiveTerminalStream,
-    terminal: TerminalSession,
-  ): void {
-    this.clearTerminalSnapshotRetry(activeStream);
-    activeStream.needsSnapshot = false;
-    this.emitBinary(
-      encodeTerminalStreamFrame({
-        opcode: TerminalStreamOpcode.Snapshot,
-        payload: encodeTerminalSnapshotPayload(terminal.getState()),
-      }),
-    );
-  }
-
-  private scheduleTerminalSnapshotRetry(
-    activeStream: ActiveTerminalStream,
-    terminal: TerminalSession,
-  ): void {
-    if (activeStream.snapshotTimer) {
-      return;
-    }
-    activeStream.snapshotTimer = setTimeout(() => {
-      activeStream.snapshotTimer = null;
-      if (this.activeTerminalStream !== activeStream || !activeStream.needsSnapshot) {
-        return;
-      }
-      this.maybeSendQueuedTerminalSnapshot(activeStream, terminal);
-    }, 33);
-  }
-
-  private clearTerminalSnapshotRetry(activeStream: ActiveTerminalStream): void {
-    if (!activeStream.snapshotTimer) {
-      return;
-    }
-    clearTimeout(activeStream.snapshotTimer);
-    activeStream.snapshotTimer = null;
-  }
-
   private detachActiveTerminalStream(options?: { emitExit: boolean }): boolean {
     const activeStream = this.activeTerminalStream;
     if (!activeStream) {
       return false;
     }
     this.activeTerminalStream = null;
-    this.clearTerminalSnapshotRetry(activeStream);
+    if (activeStream.snapshotRetryTimer) {
+      clearTimeout(activeStream.snapshotRetryTimer);
+      activeStream.snapshotRetryTimer = null;
+    }
     try {
       activeStream.unsubscribe();
     } catch (error) {
diff --git a/packages/server/src/shared/messages.ts b/packages/server/src/shared/messages.ts
index 39a248f10..f0c0d3874 100644
--- a/packages/server/src/shared/messages.ts
+++ b/packages/server/src/shared/messages.ts
@@ -2104,15 +2104,15 @@ export const TerminalCellSchema = z.object({
   bold: z.boolean().optional(),
   italic: z.boolean().optional(),
   underline: z.boolean().optional(),
-});
+}).strict();
 
 export const TerminalStateSchema = z.object({
   rows: z.number(),
   cols: z.number(),
   grid: z.array(z.array(TerminalCellSchema)),
   scrollback: z.array(z.array(TerminalCellSchema)),
-  cursor: z.object({ row: z.number(), col: z.number() }),
-});
+  cursor: z.object({ row: z.number(), col: z.number() }).strict(),
+}).strict();
 
 export const ListTerminalsResponseSchema = z.object({
   type: z.literal("list_terminals_response"),
@@ -2144,7 +2144,6 @@ export const SubscribeTerminalResponseSchema = z.object({
   type: z.literal("subscribe_terminal_response"),
   payload: z.object({
     terminalId: z.string(),
-    state: TerminalStateSchema.nullable(),
     error: z.string().nullable(),
     requestId: z.string(),
   }),
diff --git a/packages/server/src/shared/terminal-stream-protocol.test.ts b/packages/server/src/shared/terminal-stream-protocol.test.ts
index 89db47595..a391eed72 100644
--- a/packages/server/src/shared/terminal-stream-protocol.test.ts
+++ b/packages/server/src/shared/terminal-stream-protocol.test.ts
@@ -56,4 +56,50 @@ describe("terminal stream protocol", () => {
   it("rejects unknown opcodes", () => {
     expect(decodeTerminalStreamFrame(new Uint8Array([0xff, 0x01]))).toBeNull();
   });
+
+  it("rejects malformed JSON payloads", () => {
+    const malformed = new TextEncoder().encode("{");
+
+    expect(decodeTerminalResizePayload(malformed)).toBeNull();
+    expect(decodeTerminalSnapshotPayload(malformed)).toBeNull();
+  });
+
+  it("rejects invalid resize and snapshot shapes", () => {
+    expect(
+      decodeTerminalResizePayload(new TextEncoder().encode(JSON.stringify({ rows: "24", cols: 80 }))),
+    ).toBeNull();
+    expect(
+      decodeTerminalSnapshotPayload(
+        new TextEncoder().encode(
+          JSON.stringify({
+            rows: 1,
+            cols: 1,
+            grid: [[{ char: "A" }]],
+            scrollback: [],
+          }),
+        ),
+      ),
+    ).toBeNull();
+  });
+
+  it("rejects unknown fields in resize and snapshot payloads", () => {
+    expect(
+      decodeTerminalResizePayload(
+        new TextEncoder().encode(JSON.stringify({ rows: 24, cols: 80, extra: true })),
+      ),
+    ).toBeNull();
+    expect(
+      decodeTerminalSnapshotPayload(
+        new TextEncoder().encode(
+          JSON.stringify({
+            rows: 1,
+            cols: 1,
+            grid: [[{ char: "A", extra: true }]],
+            scrollback: [],
+            cursor: { row: 0, col: 1 },
+          }),
+        ),
+      ),
+    ).toBeNull();
+  });
 });
diff --git a/packages/server/src/shared/terminal-stream-protocol.ts b/packages/server/src/shared/terminal-stream-protocol.ts
index 2c5c3ec51..f27a55621 100644
--- a/packages/server/src/shared/terminal-stream-protocol.ts
+++ b/packages/server/src/shared/terminal-stream-protocol.ts
@@ -4,7 +4,7 @@ import { TerminalStateSchema } from "./messages.js";
 export const TerminalStreamResizeSchema = z.object({
   rows: z.number().int().positive(),
   cols: z.number().int().positive(),
-});
+}).strict();
 
 export const TerminalStreamOpcode = {
   Output: 0x01,
@@ -115,6 +115,10 @@ function encodeJsonPayload(value: unknown): Uint8Array {
 }
 
 function decodeJsonPayload(bytes: Uint8Array): unknown {
-  const text = new TextDecoder().decode(bytes);
-  return JSON.parse(text);
+  try {
+    const text = new TextDecoder().decode(bytes);
+    return JSON.parse(text);
+  } catch {
+    return null;
+  }
 }
diff --git a/packages/server/src/terminal/terminal.test.ts b/packages/server/src/terminal/terminal.test.ts
index 04926991a..ed3adf92a 100644
--- a/packages/server/src/terminal/terminal.test.ts
+++ b/packages/server/src/terminal/terminal.test.ts
@@ -438,6 +438,31 @@ describe("Terminal", () => {
       unsubscribe();
     });
 
+    it("emits output only after getState reflects the new data", async () => {
+      const session = trackSession(
+        await createTerminal({
+          cwd: "/tmp",
+          shell: "/bin/sh",
+          env: { PS1: "$ " },
+        }),
+      );
+
+      await waitForLines(session, ["$"]);
+      const outputSeenInState = new Promise<boolean>((resolve) => {
+        const unsubscribe = session.subscribe((message) => {
+          if (message.type !== "output" || !message.data.includes("state-after-output")) {
+            return;
+          }
+          unsubscribe();
+          const stateText = getLines(session.getState()).join("\n");
+          resolve(stateText.includes("state-after-output"));
+        });
+      });
+
+      session.send({ type: "input", data: "echo state-after-output\r" });
+      expect(await outputSeenInState).toBe(true);
+    });
+
     it("unsubscribe stops receiving messages", async () => {
       const session = trackSession(
         await createTerminal({
diff --git a/packages/server/src/terminal/terminal.ts b/packages/server/src/terminal/terminal.ts
index aa5cfaf53..5902aff5f 100644
--- a/packages/server/src/terminal/terminal.ts
+++ b/packages/server/src/terminal/terminal.ts
@@ -322,10 +322,13 @@ export async function createTerminal(options: CreateTerminalOptions): Promise<Te
   // Pipe PTY output to terminal emulator
   ptyProcess.onData((data) => {
     if (killed) return;
-    for (const listener of listeners) {
-      listener({ type: "output", data });
-    }
     terminal.write(data, () => {
+      if (disposed || killed) {
+        return;
+      }
+      for (const listener of listeners) {
+        listener({ type: "output", data });
+      }
       scheduleStateBroadcast();
     });
   });
@@ -359,6 +362,7 @@ export async function createTerminal(options: CreateTerminalOptions): Promise<Te
       case "resize":
         terminal.resize(msg.cols, msg.rows);
         ptyProcess.resize(msg.cols, msg.rows);
+        scheduleStateBroadcast();
         break;
       case "mouse":
         // Mouse events can be sent as escape sequences if terminal supports it
@@ -370,8 +374,8 @@ export async function createTerminal(options: CreateTerminalOptions): Promise<Te
   function subscribe(listener: (msg: ServerMessage) => void): () => void {
     listeners.add(listener);
 
-    queueMicrotask(() => {
-      if (listeners.has(listener)) {
+    terminal.write("", () => {
+      if (!disposed && listeners.has(listener)) {
         listener({ type: "snapshot", state: getState() });
       }
     });