diff --git a/packages/app/src/app/agent/[id].tsx b/packages/app/src/app/agent/[id].tsx
index f8a34f253..3fef38b4d 100644
--- a/packages/app/src/app/agent/[id].tsx
+++ b/packages/app/src/app/agent/[id].tsx
@@ -1,5 +1,13 @@
 import { useEffect, useMemo, useRef, useCallback, useState } from "react";
-import { View, Text, ActivityIndicator, Pressable, Modal, Dimensions } from "react-native";
+import {
+  View,
+  Text,
+  ActivityIndicator,
+  Pressable,
+  Modal,
+  useWindowDimensions,
+  LayoutChangeEvent,
+} from "react-native";
 import { useLocalSearchParams, useRouter } from "expo-router";
 import { useSafeAreaInsets } from "react-native-safe-area-context";
 import { useReanimatedKeyboardAnimation } from "react-native-keyboard-controller";
@@ -28,8 +36,10 @@ export default function AgentScreen() {
     initializeAgent,
   } = useSession();
   const { registerFooterControls, unregisterFooterControls } = useFooterControls();
+  const { width: windowWidth, height: windowHeight } = useWindowDimensions();
   const [menuVisible, setMenuVisible] = useState(false);
   const [menuPosition, setMenuPosition] = useState({ top: 0, left: 0 });
+  const [menuContentHeight, setMenuContentHeight] = useState(0);
   const menuButtonRef = useRef<View>(null);
 
   // Keyboard animation
@@ -97,25 +107,75 @@ export default function AgentScreen() {
     };
   }, [agentControls, agent, isInitializing, registerFooterControls, unregisterFooterControls]);
 
-  const handleOpenMenu = useCallback(() => {
-    menuButtonRef.current?.measureInWindow((x, y, width, height) => {
-      const screenWidth = Dimensions.get("window").width;
-      const verticalOffset = 6;
-      const horizontalMargin = 16;
-      const desiredLeft = x + width - DROPDOWN_WIDTH;
-      const maxLeft = screenWidth - DROPDOWN_WIDTH - horizontalMargin;
-      const clampedLeft = Math.min(Math.max(desiredLeft, horizontalMargin), maxLeft);
+  const recalculateMenuPosition = useCallback(
+    (onMeasured?: () => void) => {
+      requestAnimationFrame(() => {
+        const anchor = menuButtonRef.current;
 
-      setMenuPosition({
-        top: y + height + verticalOffset,
-        left: clampedLeft,
+        if (!anchor) {
+          if (onMeasured) {
+            onMeasured();
+          }
+          return;
+        }
+
+        anchor.measureInWindow((x, y, width, height) => {
+          const verticalOffset = 8;
+          const horizontalMargin = 16;
+          const desiredLeft = x + width - DROPDOWN_WIDTH;
+          const maxLeft = windowWidth - DROPDOWN_WIDTH - horizontalMargin;
+          const clampedLeft = Math.min(Math.max(desiredLeft, horizontalMargin), maxLeft);
+
+          // Position menu below button - add insets.top to account for status bar
+          const buttonBottom = y + height + insets.top;
+          const top = buttonBottom + verticalOffset;
+          
+          // If menu would go off screen, clamp to visible area
+          const bottomEdge = top + menuContentHeight;
+          const maxBottom = windowHeight - horizontalMargin;
+          const clampedTop = bottomEdge > maxBottom 
+            ? Math.max(verticalOffset, maxBottom - menuContentHeight)
+            : top;
+
+          console.log('[Menu] Button position:', { x, y, width, height, insetsTop: insets.top });
+          console.log('[Menu] Calculated position:', { buttonBottom, top, clampedTop, left: clampedLeft });
+
+          setMenuPosition({
+            top: clampedTop,
+            left: clampedLeft,
+          });
+
+          if (onMeasured) {
+            onMeasured();
+          }
+        });
       });
+    },
+    [menuContentHeight, windowHeight, windowWidth]
+  );
+
+  const handleOpenMenu = useCallback(() => {
+    recalculateMenuPosition(() => {
       setMenuVisible(true);
     });
-  }, []);
+  }, [recalculateMenuPosition]);
 
   const handleCloseMenu = useCallback(() => {
     setMenuVisible(false);
+    setMenuContentHeight(0);
+  }, []);
+
+  useEffect(() => {
+    if (!menuVisible) {
+      return;
+    }
+
+    recalculateMenuPosition();
+  }, [menuVisible, recalculateMenuPosition]);
+
+  const handleMenuLayout = useCallback((event: LayoutChangeEvent) => {
+    const { height } = event.nativeEvent.layout;
+    setMenuContentHeight((current) => (current === height ? current : height));
   }, []);
 
   const handleViewChanges = useCallback(() => {
@@ -191,6 +251,7 @@ export default function AgentScreen() {
                 width: DROPDOWN_WIDTH,
               },
             ]}
+            onLayout={handleMenuLayout}
           >
             <Pressable onPress={handleViewChanges} style={styles.menuItem}>
               <GitBranch size={20} color={theme.colors.foreground} />
diff --git a/packages/app/src/app/git-diff.tsx b/packages/app/src/app/git-diff.tsx
index e60ae139f..8cc137200 100644
--- a/packages/app/src/app/git-diff.tsx
+++ b/packages/app/src/app/git-diff.tsx
@@ -134,18 +134,28 @@ export default function GitDiffScreen() {
                 >
                   <View style={styles.diffLinesContainer}>
                     {file.lines.map((line, lineIndex) => (
-                      <Text
+                      <View
                         key={lineIndex}
                         style={[
-                          styles.diffLine,
-                          line.type === "add" && styles.addLine,
-                          line.type === "remove" && styles.removeLine,
-                          line.type === "header" && styles.headerLine,
-                          line.type === "context" && styles.contextLine,
+                          styles.diffLineContainer,
+                          line.type === "add" && styles.addLineContainer,
+                          line.type === "remove" && styles.removeLineContainer,
+                          line.type === "header" && styles.headerLineContainer,
+                          line.type === "context" && styles.contextLineContainer,
                         ]}
                       >
-                        {line.content}
-                      </Text>
+                        <Text
+                          style={[
+                            styles.diffLineText,
+                            line.type === "add" && styles.addLineText,
+                            line.type === "remove" && styles.removeLineText,
+                            line.type === "header" && styles.headerLineText,
+                            line.type === "context" && styles.contextLineText,
+                          ]}
+                        >
+                          {line.content}
+                        </Text>
+                      </View>
                     ))}
                   </View>
                 </ScrollView>
@@ -232,27 +242,42 @@ const styles = StyleSheet.create((theme) => ({
   diffLinesContainer: {
     alignSelf: "flex-start",
   },
-  diffLine: {
-    fontSize: theme.fontSize.xs,
-    fontFamily: "monospace",
+  diffLineContainer: {
+    minWidth: "100%",
     paddingHorizontal: theme.spacing[3],
     paddingVertical: theme.spacing[1],
-    flexShrink: 0,
-    minWidth: "100%",
+    alignSelf: "flex-start",
+    flexDirection: "row",
+    alignItems: "center",
   },
-  addLine: {
+  diffLineText: {
+    fontSize: theme.fontSize.xs,
+    fontFamily: "monospace",
+    color: theme.colors.foreground,
+    flexShrink: 0,
+  },
+  addLineContainer: {
     backgroundColor: theme.colors.palette.green[900],
+  },
+  addLineText: {
     color: theme.colors.palette.green[200],
   },
-  removeLine: {
+  removeLineContainer: {
     backgroundColor: theme.colors.palette.red[900],
+  },
+  removeLineText: {
     color: theme.colors.palette.red[200],
   },
-  headerLine: {
-    color: theme.colors.mutedForeground,
+  headerLineContainer: {
     backgroundColor: theme.colors.muted,
   },
-  contextLine: {
+  headerLineText: {
+    color: theme.colors.mutedForeground,
+  },
+  contextLineContainer: {
+    backgroundColor: theme.colors.card,
+  },
+  contextLineText: {
     color: theme.colors.mutedForeground,
   },
 }));
diff --git a/packages/app/src/components/agent-input-area.tsx b/packages/app/src/components/agent-input-area.tsx
index 1f0cdb147..f73dc2630 100644
--- a/packages/app/src/components/agent-input-area.tsx
+++ b/packages/app/src/components/agent-input-area.tsx
@@ -261,11 +261,6 @@ export function AgentInputArea({ agentId }: AgentInputAreaProps) {
 
   return (
     <View style={styles.container}>
-      {/* Status bar */}
-      <View style={styles.statusBarContainer}>
-        <AgentStatusBar agentId={agentId} />
-      </View>
-
       {/* Border separator */}
       <View style={styles.borderSeparator} />
 
@@ -298,10 +293,26 @@ export function AgentInputArea({ agentId }: AgentInputAreaProps) {
             </View>
           )}
 
-          {/* Input row */}
-          <View style={styles.inputRow}>
-            {/* Attachment button */}
-            {!isRecording && (
+          {/* Full-width text input */}
+          <TextInput
+            value={userInput}
+            onChangeText={setUserInput}
+            placeholder="Message agent..."
+            placeholderTextColor={theme.colors.mutedForeground}
+            style={[
+              styles.textInput,
+              { height: inputHeight, minHeight: MIN_INPUT_HEIGHT, maxHeight: MAX_INPUT_HEIGHT },
+            ]}
+            multiline
+            scrollEnabled={inputHeight >= MAX_INPUT_HEIGHT}
+            onContentSizeChange={handleContentSizeChange}
+            editable={!isRecording && ws.isConnected}
+          />
+
+          {/* Button row below input */}
+          <View style={styles.buttonRow}>
+            {/* Left button group */}
+            <View style={styles.leftButtonGroup}>
               <Pressable
                 onPress={handlePickImage}
                 disabled={!ws.isConnected}
@@ -312,71 +323,52 @@ export function AgentInputArea({ agentId }: AgentInputAreaProps) {
               >
                 <Paperclip size={20} color={theme.colors.foreground} />
               </Pressable>
-            )}
+              <AgentStatusBar agentId={agentId} />
+            </View>
 
-            {/* Text input */}
-            <TextInput
-              value={userInput}
-              onChangeText={setUserInput}
-              placeholder="Message agent..."
-              placeholderTextColor={theme.colors.mutedForeground}
-              style={[
-                styles.textInput,
-                { height: inputHeight, minHeight: MIN_INPUT_HEIGHT, maxHeight: MAX_INPUT_HEIGHT },
-              ]}
-              multiline
-              scrollEnabled={inputHeight >= MAX_INPUT_HEIGHT}
-              onContentSizeChange={handleContentSizeChange}
-              editable={!isRecording && ws.isConnected}
-            />
-
-            {/* Buttons */}
-            <View style={styles.buttonRow}>
-                {hasText || hasImages ? (
-                  // Send button when text is entered or images are selected
+            {/* Right button group */}
+            <View style={styles.rightButtonGroup}>
+              {hasText || hasImages ? (
+                <Pressable
+                  onPress={handleSendMessage}
+                  disabled={!ws.isConnected || isProcessing}
+                  style={[
+                    styles.sendButton,
+                    (!ws.isConnected || isProcessing) && styles.buttonDisabled,
+                  ]}
+                >
+                  <ArrowUp size={20} color="white" />
+                </Pressable>
+              ) : !isRealtimeMode ? (
+                <>
                   <Pressable
-                    onPress={handleSendMessage}
-                    disabled={!ws.isConnected || isProcessing}
+                    onPress={handleVoicePress}
+                    disabled={!ws.isConnected}
                     style={[
-                      styles.sendButton,
-                      (!ws.isConnected || isProcessing) && styles.buttonDisabled,
+                      styles.voiceButton,
+                      !ws.isConnected && styles.buttonDisabled,
+                      isRecording && styles.voiceButtonRecording,
                     ]}
                   >
-                    <ArrowUp size={20} color="white" />
+                    {isRecording ? (
+                      <Square size={14} color="white" fill="white" />
+                    ) : (
+                      <Mic size={20} color={theme.colors.foreground} />
+                    )}
                   </Pressable>
-                ) : !isRealtimeMode ? (
-                  // Voice and Realtime buttons when no text and not in realtime mode
-                  <>
-                    {/* Voice recording button */}
-                    <Pressable
-                      onPress={handleVoicePress}
-                      disabled={!ws.isConnected}
-                      style={[
-                        styles.voiceButton,
-                        !ws.isConnected && styles.buttonDisabled,
-                        isRecording && styles.voiceButtonRecording,
-                      ]}
-                    >
-                      {isRecording ? (
-                        <Square size={14} color="white" fill="white" />
-                      ) : (
-                        <Mic size={20} color={theme.colors.foreground} />
-                      )}
-                    </Pressable>
 
-                    {/* Realtime button */}
-                    <Pressable
-                      onPress={startRealtime}
-                      disabled={!ws.isConnected}
-                      style={[
-                        styles.realtimeButton,
-                        !ws.isConnected && styles.buttonDisabled,
-                      ]}
-                    >
-                      <AudioLines size={20} color={theme.colors.background} />
-                    </Pressable>
-                  </>
-                ) : null}
+                  <Pressable
+                    onPress={startRealtime}
+                    disabled={!ws.isConnected}
+                    style={[
+                      styles.realtimeButton,
+                      !ws.isConnected && styles.buttonDisabled,
+                    ]}
+                  >
+                    <AudioLines size={20} color={theme.colors.background} />
+                  </Pressable>
+                </>
+              ) : null}
             </View>
           </View>
         </Animated.View>
@@ -400,9 +392,6 @@ const styles = StyleSheet.create((theme) => ({
   container: {
     flexDirection: "column",
   },
-  statusBarContainer: {
-    backgroundColor: theme.colors.background,
-  },
   borderSeparator: {
     height: theme.borderWidth[1],
     backgroundColor: theme.colors.border,
@@ -417,8 +406,8 @@ const styles = StyleSheet.create((theme) => ({
   inputContainer: {
     flexDirection: "column",
     paddingHorizontal: theme.spacing[4],
-    paddingVertical: BASE_VERTICAL_PADDING,
-    gap: theme.spacing[2],
+    paddingVertical: theme.spacing[3],
+    gap: theme.spacing[3],
     minHeight: FOOTER_HEIGHT,
   },
   overlayContainer: {
@@ -452,7 +441,26 @@ const styles = StyleSheet.create((theme) => ({
     alignItems: "center",
     justifyContent: "center",
   },
-  inputRow: {
+  textInput: {
+    width: "100%",
+    paddingHorizontal: theme.spacing[4],
+    paddingVertical: theme.spacing[3],
+    backgroundColor: theme.colors.muted,
+    borderRadius: theme.borderRadius.lg,
+    color: theme.colors.foreground,
+    fontSize: theme.fontSize.base,
+  },
+  buttonRow: {
+    flexDirection: "row",
+    alignItems: "center",
+    justifyContent: "space-between",
+  },
+  leftButtonGroup: {
+    flexDirection: "row",
+    alignItems: "center",
+    gap: theme.spacing[2],
+  },
+  rightButtonGroup: {
     flexDirection: "row",
     alignItems: "center",
     gap: theme.spacing[2],
@@ -463,20 +471,6 @@ const styles = StyleSheet.create((theme) => ({
     alignItems: "center",
     justifyContent: "center",
   },
-  textInput: {
-    flex: 1,
-    paddingHorizontal: theme.spacing[4],
-    paddingVertical: theme.spacing[2],
-    backgroundColor: theme.colors.muted,
-    borderRadius: theme.borderRadius.lg,
-    color: theme.colors.foreground,
-    fontSize: theme.fontSize.base,
-  },
-  buttonRow: {
-    flexDirection: "row",
-    alignItems: "center",
-    gap: theme.spacing[2],
-  },
   sendButton: {
     width: 40,
     height: 40,
diff --git a/packages/app/src/components/agent-status-bar.tsx b/packages/app/src/components/agent-status-bar.tsx
index 9a7ecd4e0..df78af342 100644
--- a/packages/app/src/components/agent-status-bar.tsx
+++ b/packages/app/src/components/agent-status-bar.tsx
@@ -78,16 +78,13 @@ export function AgentStatusBar({ agentId }: AgentStatusBarProps) {
         </Pressable>
       )}
 
-      {/* Agent Status Indicator */}
-      <View style={styles.statusIndicator}>
-        <View
-          style={[
-            styles.statusDot,
-            { backgroundColor: getStatusColor(agent.status) },
-          ]}
-        />
-        <Text style={styles.statusText}>{getStatusLabel(agent.status)}</Text>
-      </View>
+      {/* Agent Status Indicator - just a dot */}
+      <View
+        style={[
+          styles.statusDot,
+          { backgroundColor: getStatusColor(agent.status) },
+        ]}
+      />
 
       {/* Mode selector modal */}
       <ModeSelectorModal
@@ -105,9 +102,6 @@ const styles = StyleSheet.create((theme) => ({
     flexDirection: "row",
     alignItems: "center",
     gap: theme.spacing[3],
-    paddingHorizontal: theme.spacing[4],
-    paddingTop: theme.spacing[2],
-    paddingBottom: theme.spacing[1],
   },
   modeBadge: {
     flexDirection: "row",