diff --git a/.changeset/smooth-streaming-transcript.md b/.changeset/smooth-streaming-transcript.md
new file mode 100644
index 00000000000..68d740d6646
--- /dev/null
+++ b/.changeset/smooth-streaming-transcript.md
@@ -0,0 +1,6 @@
+---
+"@kilocode/kilo-ui": patch
+"kilo-code": patch
+---
+
+Keep the session transcript glued to its bottom while a response streams, so text, tool cards, reasoning, and message actions no longer twitch as they update.
diff --git a/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/chat-view-readable-420-chromium-linux.png b/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/chat-view-readable-420-chromium-linux.png
index 203aa7fd0ea..6014d515eea 100644
--- a/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/chat-view-readable-420-chromium-linux.png
+++ b/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/chat-view-readable-420-chromium-linux.png
@@ -1,3 +1,3 @@
 version https://git-lfs.github.com/spec/v1
-oid sha256:bbe086983757d02e90c26f3798a6a8e3883ac57e009bebdde0852836684c7595
-size 32553
+oid sha256:208d1aed2d0a3a3b5397d1a11155871f6bd8c01ee8772b81fb45875c36d43a17
+size 32340
diff --git a/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/message-list-layout-correction-chromium-linux.png b/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/message-list-layout-correction-chromium-linux.png
index f00d7b3ef94..ca23518fe56 100644
--- a/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/message-list-layout-correction-chromium-linux.png
+++ b/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/message-list-layout-correction-chromium-linux.png
@@ -1,3 +1,3 @@
 version https://git-lfs.github.com/spec/v1
-oid sha256:d866d08bc0d18ee2abc4c2bd246f2a958107ca1cb1771cb61e37aa2597504ed8
-size 28266
+oid sha256:e50f52681c7c255f4f65bea146dd4adbbb8a5d3a0027777406e42572c58378f4
+size 29904
diff --git a/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/prompt-rail-sidebar-chromium-linux.png b/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/prompt-rail-sidebar-chromium-linux.png
index b291c211758..34d77548c9a 100644
--- a/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/prompt-rail-sidebar-chromium-linux.png
+++ b/packages/kilo-docs/public/img/screenshot-tests/kilo-vscode/visual-regression/chat/prompt-rail-sidebar-chromium-linux.png
@@ -1,3 +1,3 @@
 version https://git-lfs.github.com/spec/v1
-oid sha256:c2c8b3e4ded1bde02fe2c72764d16c4e056a91e9fa935c9925b8095bfaf9a748
-size 27272
+oid sha256:7403709acf8593873394ba15f23a50b56b2008e7d99440df503089a3f21b2fe6
+size 30279
diff --git a/packages/kilo-ui/src/components/message-part.css b/packages/kilo-ui/src/components/message-part.css
index 3d9d9d63128..1edeff46e16 100644
--- a/packages/kilo-ui/src/components/message-part.css
+++ b/packages/kilo-ui/src/components/message-part.css
@@ -119,7 +119,6 @@
         color: var(--text-base);
       }
     }
-
   }
 
   [data-slot="message-part-title-filename"] {
@@ -155,7 +154,6 @@
     direction: rtl;
     text-align: left;
   }
-
 }
 
 /* Task tool child-session tool list (v1.0.25 style) */
@@ -828,6 +826,30 @@ html[data-theme="kilo-vscode"] [data-component="reasoning-part"] {
   }
 }
 
+/* The shared collapsible turns overflow visible when expanded, which let the
+   reasoning markdown spill below its box for a frame while the height changed.
+   Clip it at the box instead, and give the auto-collapse at the end of a
+   reasoning block a real animation, so the transcript slides instead of
+   jumping when a tall block closes. */
+[data-component="reasoning-part"] [data-slot="collapsible-content"][data-expanded] {
+  overflow: clip;
+}
+
+[data-component="reasoning-part"] [data-slot="collapsible-content"][data-closed] {
+  overflow: clip;
+  animation: kilo-reasoning-close 180ms ease-out;
+}
+
+@keyframes kilo-reasoning-close {
+  from {
+    height: var(--kb-collapsible-content-height);
+  }
+
+  to {
+    height: 0;
+  }
+}
+
 @media (prefers-reduced-motion: reduce) {
   [data-component="reasoning-part"] [data-slot="collapsible-content"][data-expanded],
   [data-component="reasoning-part"] [data-slot="collapsible-content"][data-closed] {
diff --git a/packages/kilo-ui/src/hooks/create-auto-scroll.test.tsx b/packages/kilo-ui/src/hooks/create-auto-scroll.test.tsx
index e793f166934..1033c5ad4f1 100644
--- a/packages/kilo-ui/src/hooks/create-auto-scroll.test.tsx
+++ b/packages/kilo-ui/src/hooks/create-auto-scroll.test.tsx
@@ -12,6 +12,7 @@ mock.module("@solid-primitives/resize-observer", () => ({
 const originalElement = globalThis.Element
 const originalNode = globalThis.Node
 const originalWheelEvent = globalThis.WheelEvent
+const originalMutationObserver = globalThis.MutationObserver
 
 type Listener = {
   callback: (event: Event) => void
@@ -113,9 +114,25 @@ class FakeKeyboardEvent {
   ) {}
 }
 
+const mutators: (() => void)[] = []
+
+class FakeMutationObserver {
+  constructor(readonly callback: () => void) {
+    mutators.push(callback)
+  }
+
+  observe() {}
+
+  disconnect() {
+    const at = mutators.indexOf(this.callback)
+    if (at >= 0) mutators.splice(at, 1)
+  }
+}
+
 globalThis.Element = FakeElement as unknown as typeof Element
 globalThis.Node = FakeElement as unknown as typeof Node
 globalThis.WheelEvent = FakeWheelEvent as unknown as typeof WheelEvent
+globalThis.MutationObserver = FakeMutationObserver as unknown as typeof MutationObserver
 
 const { createAutoScroll } = await import("./create-auto-scroll")
 
@@ -133,6 +150,8 @@ function setup(options?: { doc?: FakeDocument; interacted?: () => void; working?
   root.scroll.scrollRef(el as unknown as HTMLElement)
   root.scroll.contentRef(new FakeElement() as unknown as HTMLElement)
 
+  const mutate = () => mutators.forEach((callback) => callback())
+
   const resize = (index?: number) => {
     if (index !== undefined) {
       observers[index]?.()
@@ -141,11 +160,12 @@ function setup(options?: { doc?: FakeDocument; interacted?: () => void; working?
     observers.forEach((callback) => callback())
   }
 
-  return { ...root, doc, el, resize }
+  return { ...root, doc, el, resize, mutate }
 }
 
 beforeEach(() => {
   observers.length = 0
+  mutators.length = 0
 })
 
 afterAll(() => {
@@ -155,6 +175,8 @@ afterAll(() => {
   else Reflect.deleteProperty(globalThis, "Node")
   if (originalWheelEvent) globalThis.WheelEvent = originalWheelEvent
   else Reflect.deleteProperty(globalThis, "WheelEvent")
+  if (originalMutationObserver) globalThis.MutationObserver = originalMutationObserver
+  else Reflect.deleteProperty(globalThis, "MutationObserver")
 })
 
 describe("createAutoScroll non-scrollable layouts", () => {
@@ -289,16 +311,59 @@ describe("createAutoScroll non-scrollable layouts", () => {
     ctx.el.scrollTop = 800
     ctx.scroll.handleScroll()
 
+    // A tool card that shrinks and recovers inside one frame makes the browser
+    // clamp the pin away without changing the final content size, so no resize
+    // entry follows and the pin has to be restored from the scroll event.
     ctx.el.scrollTop = 760
     ctx.scroll.handleScroll()
 
     expect(ctx.scroll.userScrolled()).toBe(false)
+    expect(ctx.el.scrollTop).toBe(1000)
+    ctx.dispose()
+  })
 
-    ctx.el.scrollHeight = 1100
-    ctx.resize(0)
+  test("pins streamed content when it is added, before any resize entry", () => {
+    const ctx = setup({ working: true })
+    ctx.el.scrollHeight = 1000
+    ctx.el.clientHeight = 200
+    ctx.el.scrollTop = 800
+
+    // The resize entry for this growth only arrives after the frame has laid out
+    // and painted, so the mutation itself has to pin the view.
+    ctx.el.scrollHeight = 1080
+    ctx.mutate()
+
+    expect(ctx.scroll.userScrolled()).toBe(false)
+    expect(ctx.el.scrollTop).toBe(1080)
+    ctx.dispose()
+  })
+
+  test("ignores content mutations while the user reads earlier output", () => {
+    const ctx = setup({ working: true })
+    ctx.el.scrollHeight = 1000
+    ctx.el.clientHeight = 200
+    ctx.el.scrollTop = 400
+    ctx.scroll.pause()
+
+    ctx.el.scrollHeight = 1080
+    ctx.mutate()
+
+    expect(ctx.el.scrollTop).toBe(400)
+    ctx.dispose()
+  })
+
+  test("leaves an idle transcript where a layout clamp put it", () => {
+    const ctx = setup()
+    ctx.el.scrollHeight = 1000
+    ctx.el.clientHeight = 200
+    ctx.el.scrollTop = 800
+    ctx.scroll.handleScroll()
+
+    ctx.el.scrollTop = 704
+    ctx.scroll.handleScroll()
 
     expect(ctx.scroll.userScrolled()).toBe(false)
-    expect(ctx.el.scrollTop).toBe(1100)
+    expect(ctx.el.scrollTop).toBe(704)
     ctx.dispose()
   })
 
diff --git a/packages/kilo-ui/src/hooks/create-auto-scroll.tsx b/packages/kilo-ui/src/hooks/create-auto-scroll.tsx
index 3e8d83dd6cf..0a79023e0b9 100644
--- a/packages/kilo-ui/src/hooks/create-auto-scroll.tsx
+++ b/packages/kilo-ui/src/hooks/create-auto-scroll.tsx
@@ -25,6 +25,7 @@ export function createAutoScroll(options: AutoScrollOptions) {
   let settling = false
   let settleTimer: ReturnType<typeof setTimeout> | undefined
   let cleanup: (() => void) | undefined
+  let watcher: MutationObserver | undefined
 
   const [store, setStore] = createStore({
     contentRef: undefined as HTMLElement | undefined,
@@ -111,7 +112,15 @@ export function createAutoScroll(options: AutoScrollOptions) {
 
     // Virtualizer and layout corrections can move the viewport without
     // changing content height. Only an input event should pause auto-follow.
-    if (!store.userScrolled && !input && !userActivity.isRecent()) return
+    if (!store.userScrolled && !input && !userActivity.isRecent()) {
+      // A tool card that swaps views shrinks the transcript and recovers inside
+      // the same frame. The shrink makes the browser clamp the pin away, and
+      // because the final content size is unchanged no resize entry follows, so
+      // the correction has to happen here or the transcript stays parked below
+      // its bottom until the next content update.
+      if (active()) bottom()
+      return
+    }
 
     stop()
   }
@@ -135,6 +144,18 @@ export function createAutoScroll(options: AutoScrollOptions) {
     follow()
   }
 
+  // Content mutations are pinned while they are still queued, before the frame
+  // lays out and paints. A ResizeObserver entry arrives after that layout, so
+  // waiting for it lets the browser paint one frame with the new content hanging
+  // below the viewport, which reads as the transcript twitching as it streams.
+  const onContentMutate = () => {
+    if (!scroll) return
+    if (store.userScrolled || userActivity.isRecent()) return
+    if (!canScroll(scroll)) return
+
+    follow()
+  }
+
   const onViewportResize = () => {
     if (!scroll) return
     if (!canScroll(scroll)) return
@@ -193,6 +214,18 @@ export function createAutoScroll(options: AutoScrollOptions) {
     el.style.overflowAnchor = store.userScrolled ? "auto" : "none"
   }
 
+  const setContent = (el: HTMLElement | undefined) => {
+    watcher?.disconnect()
+    watcher = undefined
+
+    setStore("contentRef", el)
+
+    if (!el || typeof MutationObserver !== "function") return
+
+    watcher = new MutationObserver(onContentMutate)
+    watcher.observe(el, { childList: true, subtree: true, characterData: true })
+  }
+
   const setScroll = (el: HTMLElement | undefined) => {
     if (cleanup) {
       cleanup()
@@ -210,6 +243,8 @@ export function createAutoScroll(options: AutoScrollOptions) {
 
   onCleanup(() => {
     if (settleTimer) clearTimeout(settleTimer)
+    watcher?.disconnect()
+    watcher = undefined
     if (cleanup) cleanup()
   })
 
@@ -219,7 +254,7 @@ export function createAutoScroll(options: AutoScrollOptions) {
 
   return {
     scrollRef: setScroll,
-    contentRef: (el: HTMLElement | undefined) => setStore("contentRef", el),
+    contentRef: setContent,
     handleScroll,
     pause,
     resume,
diff --git a/packages/kilo-vscode/tests/unit/transcript-rows.test.ts b/packages/kilo-vscode/tests/unit/transcript-rows.test.ts
index 6889aab495a..8225595b60f 100644
--- a/packages/kilo-vscode/tests/unit/transcript-rows.test.ts
+++ b/packages/kilo-vscode/tests/unit/transcript-rows.test.ts
@@ -149,6 +149,23 @@ describe("transcriptRows", () => {
     expect(rows.filter((row) => row.type === "assistant").map((row) => row.copy)).toEqual(["p1", "p1"])
   })
 
+  it("keeps historical copy rows while hiding the live turn copy row", () => {
+    const u1 = user("u1")
+    const a1 = assistant("a1", "u1")
+    const u2 = user("u2")
+    const a2 = assistant("a2", "u2")
+    const rows = transcriptRows(
+      messageTurns([u1, a1, u2, a2]),
+      lookup({ a1: [part("p1", "a1")], a2: [part("p2", "a2")] }),
+      { live: new Set(["u2"]) },
+    )
+
+    expect(rows.filter((row) => row.type === "assistant").map((row) => ({ turn: row.turn, copy: row.copy }))).toEqual([
+      { turn: "u1", copy: "p1" },
+      { turn: "u2", copy: undefined },
+    ])
+  })
+
   it("keeps compaction replies ordered under the compacted turn and respects revert turns", () => {
     const u1 = user("u1")
     const a1 = assistant("a1", "u1")
diff --git a/packages/kilo-vscode/webview-ui/src/context/transcript-rows.ts b/packages/kilo-vscode/webview-ui/src/context/transcript-rows.ts
index 89ac134335a..0d8939042cf 100644
--- a/packages/kilo-vscode/webview-ui/src/context/transcript-rows.ts
+++ b/packages/kilo-vscode/webview-ui/src/context/transcript-rows.ts
@@ -108,7 +108,11 @@ function diffs(msg: Message) {
   return msg.summary.diffs ?? []
 }
 
-function copy(messages: Message[], getParts: (id: string) => Part[]) {
+function copy(messages: Message[], getParts: (id: string) => Part[], live: boolean) {
+  // While the session streams, the last non-empty text part changes at every
+  // part boundary and the copy/feedback row would hop between parts (mount/
+  // unmount churn next to the streamed text). Anchor it only once idle.
+  if (live) return undefined
   for (let i = messages.length - 1; i >= 0; i -= 1) {
     const parts = getParts(messages[i]!.id)
     for (let j = parts.length - 1; j >= 0; j -= 1) {
@@ -138,7 +142,7 @@ export function transcriptRows(
       queued: opts.queued?.has(turn.id) === true,
       live: opts.live?.has(turn.id) === true,
     }
-    const copied = copy(turn.assistant, parts)
+    const copied = copy(turn.assistant, parts, meta.live)
 
     if (!turn.partial) {
       rows.push({
diff --git a/packages/kilo-vscode/webview-ui/src/styles/chat-layout.css b/packages/kilo-vscode/webview-ui/src/styles/chat-layout.css
index 08cab9f94d4..8d849ec4e85 100644
--- a/packages/kilo-vscode/webview-ui/src/styles/chat-layout.css
+++ b/packages/kilo-vscode/webview-ui/src/styles/chat-layout.css
@@ -132,6 +132,15 @@
   margin-inline: calc(var(--chat-scrollbar-width, 10px) / 2) calc(var(--chat-scrollbar-width, 10px) / -2);
 }
 
+/* Streaming content reflows under a parked pointer, so without a cursor of its
+   own the transcript alternated between the text cursor over message text and
+   the default cursor over containers and gaps. The whole transcript is
+   selectable text, so it declares the text cursor once and every descendant
+   inherits it. Controls keep their own pointer cursor. */
+.message-list-content {
+  cursor: text;
+}
+
 .message-list-content-empty {
   display: flex;
   min-height: 100%;