diff --git a/src/CodexAcpServer.ts b/src/CodexAcpServer.ts
index 694c44df..24a97001 100644
--- a/src/CodexAcpServer.ts
+++ b/src/CodexAcpServer.ts
@@ -105,7 +105,11 @@ import {
 } from "./FastModeConfig";
 import packageJson from "../package.json";
 import {isJetBrains2026_1Client} from "./JBUtils";
-import {resolveTerminalOutputMode, type TerminalOutputMode} from "./TerminalOutputMode";
+import {
+    clientSupportsTerminalOutputDelta,
+    resolveTerminalOutputMode,
+    type TerminalOutputMode,
+} from "./TerminalOutputMode";
 import {clientSupportsPlanUpdates} from "./PlanCapabilities";
 import {
     createAgentTextMessageChunk,
@@ -181,6 +185,7 @@ export interface SessionState {
     currentModelSupportsFast: boolean;
     sessionMcpServers?: Array<string>;
     terminalOutputMode: TerminalOutputMode;
+    terminalOutputDeltaSupported: boolean;
     currentGoal?: ThreadGoalSnapshot | null;
     goalRevision: number;
     sessionTitle: string | null;
@@ -269,6 +274,7 @@ export class CodexAcpServer {
     private clientInfo: acp.Implementation | null;
     private clientCapabilities: acp.ClientCapabilities | null;
     private terminalOutputMode: TerminalOutputMode;
+    private terminalOutputDeltaSupported: boolean;
     private booleanConfigOptionsSupported: boolean;
     /** Last `authStatus` pushed to the client; used to suppress duplicates. */
     private currentAuthStatus: AuthStatus | null;
@@ -317,6 +323,7 @@ export class CodexAcpServer {
         this.clientInfo = null;
         this.clientCapabilities = null;
         this.terminalOutputMode = "terminal_output_delta";
+        this.terminalOutputDeltaSupported = false;
         this.booleanConfigOptionsSupported = false;
         this.currentAuthStatus = null;
         this.availableCommands = this.createAvailableCommands(codexAcpClient);
@@ -340,6 +347,7 @@ export class CodexAcpServer {
         this.clientCapabilities = _params.clientCapabilities ?? null;
         this.initializeRequest = _params;
         this.terminalOutputMode = resolveTerminalOutputMode(_params.clientCapabilities);
+        this.terminalOutputDeltaSupported = clientSupportsTerminalOutputDelta(_params.clientCapabilities);
         this.booleanConfigOptionsSupported = clientSupportsBooleanConfigOptions(_params.clientCapabilities);
         await this.runWithProcessCheck(() => this.codexAcpClient.initialize(_params));
         this.publishFirstAuthStatusAfterResponse();
@@ -688,6 +696,7 @@ export class CodexAcpServer {
             currentModelSupportsFast: currentModelSupportsFast,
             sessionMcpServers: sessionMcpServers,
             terminalOutputMode: this.terminalOutputMode,
+            terminalOutputDeltaSupported: this.terminalOutputDeltaSupported,
             goalRevision: 0,
             sessionTitle: null,
             sessionTitleSource: operation === "resume" ? "unknown" : "unset",
@@ -1946,6 +1955,7 @@ export class CodexAcpServer {
             currentModelSupportsFast: currentModelSupportsFast,
             sessionMcpServers: sessionMcpServers,
             terminalOutputMode: this.terminalOutputMode,
+            terminalOutputDeltaSupported: this.terminalOutputDeltaSupported,
             goalRevision: 0,
             sessionTitle: null,
             sessionTitleSource: "unset",
diff --git a/src/CodexEventHandler.ts b/src/CodexEventHandler.ts
index b6b2275f..168f6163 100644
--- a/src/CodexEventHandler.ts
+++ b/src/CodexEventHandler.ts
@@ -226,7 +226,7 @@ export class CodexEventHandler {
     private disposed = false;
     private readonly seenReasoningDeltaItemIds = new Set<string>();
     private readonly terminalCommandIds = new Set<string>();
-    private readonly terminalCommandOutputIds = new Set<string>();
+    private readonly commandOutputIds = new Set<string>();
     private readonly agentMessagePhases = new Map<string, string | null>();
     private readonly turnDiffs = new Map<string, string>();
     private readonly oversizedTurnDiffs = new Set<string>();
@@ -807,7 +807,7 @@ export class CodexEventHandler {
                     this.terminalCommandIds.add(event.item.id);
                 } else {
                     this.terminalCommandIds.delete(event.item.id);
-                    this.terminalCommandOutputIds.delete(event.item.id);
+                    this.commandOutputIds.delete(event.item.id);
                 }
                 return await createCommandExecutionUpdate(event.item);
             }
@@ -1022,8 +1022,8 @@ export class CodexEventHandler {
     }
 
     private createCommandOutputDeltaEvent(event: CommandExecutionOutputDeltaNotification): UpdateSessionEvent {
-        if (this.terminalCommandIds.has(event.itemId) && event.delta.length > 0) {
-            this.terminalCommandOutputIds.add(event.itemId);
+        if (event.delta.length > 0) {
+            this.commandOutputIds.add(event.itemId);
         }
         return this.createCommandOutputEvent(event.itemId, event.delta, this.commandOutputMode(event.itemId));
     }
@@ -1041,12 +1041,11 @@ export class CodexEventHandler {
     }
 
     private createTerminalInteractionEvent(event: TerminalInteractionNotification): UpdateSessionEvent {
-        return this.createCommandOutputDeltaEvent({
-            threadId: event.threadId,
-            turnId: event.turnId,
-            itemId: event.itemId,
-            delta: `\n${event.stdin}\n`,
-        });
+        return this.createCommandOutputEvent(
+            event.itemId,
+            `\n${event.stdin}\n`,
+            this.commandOutputMode(event.itemId),
+        );
     }
 
     private commandOutputMode(itemId: string): TerminalOutputMode {
@@ -1110,29 +1109,34 @@ export class CodexEventHandler {
             toolCallId: item.id,
             ...(name === undefined ? {} : {name}),
             status: item.status === "completed" ? "completed" : "failed",
-            rawOutput: {
-                formatted_output: item.aggregatedOutput ?? "",
-                exit_code: item.exitCode
-            },
+            ...(this.sessionState.terminalOutputDeltaSupported ? {} : {
+                rawOutput: {
+                    formatted_output: item.aggregatedOutput ?? "",
+                    exit_code: item.exitCode
+                },
+            }),
         };
 
         const commandHadTerminal = this.terminalCommandIds.delete(item.id);
-        const commandHadOutput = this.terminalCommandOutputIds.delete(item.id);
-        if (!commandHadTerminal) {
-            return update;
-        }
+        const commandHadOutput = this.commandOutputIds.delete(item.id);
         const terminalMeta: Record<string, unknown> = {};
-        if (!commandHadOutput && item.aggregatedOutput) {
+        if (!commandHadOutput && item.aggregatedOutput &&
+            (commandHadTerminal || this.sessionState.terminalOutputDeltaSupported)) {
             Object.assign(
                 terminalMeta,
                 createTerminalOutputMeta(this.sessionState.terminalOutputMode, item.id, item.aggregatedOutput)
             );
         }
-        terminalMeta["terminal_exit"] = {
-            exit_code: item.exitCode,
-            signal: null,
-            terminal_id: item.id
-        };
+        if (commandHadTerminal) {
+            terminalMeta["terminal_exit"] = {
+                exit_code: item.exitCode,
+                signal: null,
+                terminal_id: item.id
+            };
+        }
+        if (Object.keys(terminalMeta).length === 0) {
+            return update;
+        }
         return {
             ...update,
             _meta: terminalMeta,
diff --git a/src/TerminalOutputMode.ts b/src/TerminalOutputMode.ts
index a04b62db..610f902b 100644
--- a/src/TerminalOutputMode.ts
+++ b/src/TerminalOutputMode.ts
@@ -6,12 +6,21 @@ export function resolveTerminalOutputMode(
     clientCapabilities?: acp.ClientCapabilities | null
 ): TerminalOutputMode {
     const meta = clientCapabilities?._meta;
+    if (meta?.["terminal_output_delta"] === true) {
+        return "terminal_output_delta";
+    }
     if (meta?.["terminal_output"] === true) {
         return "terminal_output";
     }
     return "terminal_output_delta";
 }
 
+export function clientSupportsTerminalOutputDelta(
+    clientCapabilities?: acp.ClientCapabilities | null
+): boolean {
+    return clientCapabilities?._meta?.["terminal_output_delta"] === true;
+}
+
 export function createTerminalOutputMeta(
     mode: TerminalOutputMode,
     terminalId: string,
diff --git a/src/__tests__/CodexACPAgent/data/terminal-command-completed.json b/src/__tests__/CodexACPAgent/data/terminal-command-completed.json
index a8fa6f4f..27d6d1cf 100644
--- a/src/__tests__/CodexACPAgent/data/terminal-command-completed.json
+++ b/src/__tests__/CodexACPAgent/data/terminal-command-completed.json
@@ -7,9 +7,11 @@
         "sessionUpdate": "tool_call_update",
         "toolCallId": "command-123",
         "status": "completed",
-        "rawOutput": {
-          "formatted_output": "file1.txt\nfile2.txt\nfile3.txt\n",
-          "exit_code": 0
+        "_meta": {
+          "terminal_output_delta": {
+            "data": "file1.txt\nfile2.txt\nfile3.txt\n",
+            "terminal_id": "command-123"
+          }
         }
       }
     }
diff --git a/src/__tests__/CodexACPAgent/data/terminal-full-flow.json b/src/__tests__/CodexACPAgent/data/terminal-full-flow.json
index d69f63eb..318d22bb 100644
--- a/src/__tests__/CodexACPAgent/data/terminal-full-flow.json
+++ b/src/__tests__/CodexACPAgent/data/terminal-full-flow.json
@@ -56,10 +56,6 @@
         "sessionUpdate": "tool_call_update",
         "toolCallId": "command-flow",
         "status": "completed",
-        "rawOutput": {
-          "formatted_output": "hello\n",
-          "exit_code": 0
-        },
         "_meta": {
           "terminal_exit": {
             "exit_code": 0,
diff --git a/src/__tests__/CodexACPAgent/terminal-output-events.test.ts b/src/__tests__/CodexACPAgent/terminal-output-events.test.ts
index d316659d..0390035b 100644
--- a/src/__tests__/CodexACPAgent/terminal-output-events.test.ts
+++ b/src/__tests__/CodexACPAgent/terminal-output-events.test.ts
@@ -129,7 +129,11 @@ describe('CodexEventHandler - terminal output events', () => {
         );
     });
 
-    it('should send formatted output on command completion', async () => {
+    it('should send one delta when command completion has no streamed output', async () => {
+        const deltaSessionState = createTestSessionState({
+            sessionId,
+            terminalOutputDeltaSupported: true,
+        });
         const commandCompletedNotification: ServerNotification = {
             method: 'item/completed',
             params: {
@@ -154,13 +158,64 @@ describe('CodexEventHandler - terminal output events', () => {
             },
         };
 
-        await setupPromptAndSendNotifications(mockFixture, sessionId, sessionState, [commandCompletedNotification]);
+        await setupPromptAndSendNotifications(mockFixture, sessionId, deltaSessionState, [commandCompletedNotification]);
 
         await expect(mockFixture.getAcpConnectionDump([])).toMatchFileSnapshot(
             'data/terminal-command-completed.json'
         );
     });
 
+    it('should flush aggregated output after terminal input without streamed output', async () => {
+        const deltaSessionState = createTestSessionState({
+            sessionId,
+            terminalOutputDeltaSupported: true,
+        });
+        const terminalInteractionNotification: ServerNotification = {
+            method: 'item/commandExecution/terminalInteraction',
+            params: {
+                threadId: sessionId,
+                turnId: 'turn-1',
+                itemId: 'command-123',
+                processId: 'pid-456',
+                stdin: 'continue',
+            },
+        };
+        const commandCompletedNotification: ServerNotification = {
+            method: 'item/completed',
+            params: {
+                threadId: sessionId,
+                turnId: 'turn-1',
+                completedAtMs: 0,
+                item: {
+                    type: 'commandExecution',
+                    id: 'command-123',
+                    pluginId: null,
+                    scriptPath: null,
+                    command: 'read answer; echo done',
+                    cwd: '/test/project',
+                    processId: 'pid-456',
+                    source: 'agent',
+                    status: 'completed',
+                    commandActions: [],
+                    aggregatedOutput: 'done\n',
+                    exitCode: 0,
+                    durationMs: 150,
+                },
+            },
+        };
+
+        await setupPromptAndSendNotifications(mockFixture, sessionId, deltaSessionState, [
+            terminalInteractionNotification,
+            commandCompletedNotification,
+        ]);
+
+        const updates = mockFixture.getAcpConnectionEvents([]).map(event => event.args[0].update);
+        expect(updates).toHaveLength(2);
+        expect(updates[0]._meta?.terminal_output_delta?.data).toBe('\ncontinue\n');
+        expect(updates[1]._meta?.terminal_output_delta?.data).toBe('done\n');
+        expect(updates[1]).not.toHaveProperty('rawOutput');
+    });
+
     it('should handle failed command completion', async () => {
         const commandFailedNotification: ServerNotification = {
             method: 'item/completed',
@@ -222,6 +277,10 @@ describe('CodexEventHandler - terminal output events', () => {
     });
 
     it('should handle full terminal output flow: start -> delta -> complete', async () => {
+        const deltaSessionState = createTestSessionState({
+            sessionId,
+            terminalOutputDeltaSupported: true,
+        });
         const commandStartNotification: ServerNotification = {
             method: 'item/started',
             params: {
@@ -280,7 +339,7 @@ describe('CodexEventHandler - terminal output events', () => {
             },
         };
 
-        await setupPromptAndSendNotifications(mockFixture, sessionId, sessionState, [
+        await setupPromptAndSendNotifications(mockFixture, sessionId, deltaSessionState, [
             commandStartNotification,
             outputDeltaNotification,
             commandCompletedNotification
diff --git a/src/__tests__/TerminalOutputMode.test.ts b/src/__tests__/TerminalOutputMode.test.ts
index d2252aa5..79beddf4 100644
--- a/src/__tests__/TerminalOutputMode.test.ts
+++ b/src/__tests__/TerminalOutputMode.test.ts
@@ -2,13 +2,13 @@ import { describe, expect, it } from "vitest";
 import { resolveTerminalOutputMode } from "../TerminalOutputMode";
 
 describe("resolveTerminalOutputMode", () => {
-    it("uses terminal_output when advertised", () => {
+    it("prefers terminal_output_delta when both modes are advertised", () => {
         expect(resolveTerminalOutputMode({
             _meta: {
                 terminal_output: true,
                 terminal_output_delta: true,
             },
-        })).toBe("terminal_output");
+        })).toBe("terminal_output_delta");
     });
 
     it("uses legacy terminal_output_delta when only it is advertised", () => {
@@ -19,6 +19,14 @@ describe("resolveTerminalOutputMode", () => {
         })).toBe("terminal_output_delta");
     });
 
+    it("uses terminal_output when it is the only advertised mode", () => {
+        expect(resolveTerminalOutputMode({
+            _meta: {
+                terminal_output: true,
+            },
+        })).toBe("terminal_output");
+    });
+
     it("keeps legacy terminal_output_delta when capabilities are absent", () => {
         expect(resolveTerminalOutputMode(null)).toBe("terminal_output_delta");
         expect(resolveTerminalOutputMode({})).toBe("terminal_output_delta");
diff --git a/src/__tests__/acp-test-utils.ts b/src/__tests__/acp-test-utils.ts
index d522b974..d613be8b 100644
--- a/src/__tests__/acp-test-utils.ts
+++ b/src/__tests__/acp-test-utils.ts
@@ -419,6 +419,7 @@ export function createTestSessionState(overrides?: Partial<SessionState>): Sessi
         fastModeEnabled: false,
         currentModelSupportsFast: false,
         terminalOutputMode: "terminal_output_delta",
+        terminalOutputDeltaSupported: false,
         goalRevision: 0,
         sessionTitle: null,
         sessionTitleSource: "unknown",