diff --git a/ui-tui/src/__tests__/useSubmission.test.ts b/ui-tui/src/__tests__/useSubmission.test.ts
new file mode 100644
index 000000000000..6d7f1fdf25d2
--- /dev/null
+++ b/ui-tui/src/__tests__/useSubmission.test.ts
@@ -0,0 +1,64 @@
+import { describe, expect, it } from 'vitest'
+
+import type { ComposerToken } from '../app/interfaces.js'
+import { prepareSubmission, shouldInterpolateSubmission } from '../app/useSubmission.js'
+
+describe('prepareSubmission', () => {
+  it('keeps the collapsed paste for display and expands the model payload', () => {
+    const label = '[[ first.. [3 lines] .. last ]]'
+    const tokens: ComposerToken[] = [{ kind: 'paste', label, text: 'first\nmiddle\nlast' }]
+
+    expect(prepareSubmission(`review this: ${label}`, tokens)).toEqual({
+      display: `review this: ${label}`,
+      text: 'review this: first\nmiddle\nlast'
+    })
+  })
+
+  it('does not execute interpolation syntax hidden inside pasted content', () => {
+    const label = '[[ copied log [1 lines] ]]'
+    const tokens: ComposerToken[] = [{ kind: 'paste', label, text: 'untrusted {!touch /tmp/pwned}' }]
+    const submission = prepareSubmission(label, tokens)
+
+    expect(shouldInterpolateSubmission(submission.display)).toBe(false)
+    expect(submission.text).toContain('{!touch /tmp/pwned}')
+  })
+})
+
+describe('visible interpolation combined with a collapsed paste', () => {
+  it('routes to interpolation when {!...} is visible in the composer alongside a paste token', () => {
+    const label = '[[ log [2 lines] ]]'
+
+    expect(shouldInterpolateSubmission(`show {!date} for ${label}`)).toBe(true)
+  })
+
+  // The interpolation branch of dispatchSubmission submits
+  //   send(prepareSubmission(text, tokens).text, true, text, identity)
+  // where `text` is interpolate()'s output: the visible {!...} already resolved,
+  // with the collapsed paste label still intact. This asserts both halves of
+  // that composition so the transcript shows resolved interpolation + the
+  // compact paste, while the model receives resolved interpolation + the full
+  // expanded paste.
+  it('display keeps resolved interpolation and the compact paste; payload expands the paste', () => {
+    const label = '[[ log [2 lines] ]]'
+    const tokens: ComposerToken[] = [{ kind: 'paste', label, text: 'line one\nline two' }]
+
+    // interpolate() has resolved the visible {!date} -> "Tue" and left the paste label alone.
+    const interpolated = `Tue for ${label}`
+    const submission = prepareSubmission(interpolated, tokens)
+
+    expect(submission.display).toBe(`Tue for ${label}`)
+    expect(submission.display).not.toContain('{!')
+    expect(submission.text).toBe('Tue for line one\nline two')
+  })
+
+  // Regression guard for the display bug teknium1 flagged: the transcript must
+  // not fall back to the PRE-interpolation composer text, which still carries
+  // the literal {!...}.
+  it('does not show the raw {!...} syntax as the transcript display', () => {
+    const label = '[[ log [2 lines] ]]'
+    const tokens: ComposerToken[] = [{ kind: 'paste', label, text: 'line one\nline two' }]
+
+    const preInterpolation = `show {!date} for ${label}`
+    expect(prepareSubmission(preInterpolation, tokens).display).toContain('{!')
+  })
+})
diff --git a/ui-tui/src/app/useSubmission.ts b/ui-tui/src/app/useSubmission.ts
index 3862a8099b4c..a0c18f3b6f29 100644
--- a/ui-tui/src/app/useSubmission.ts
+++ b/ui-tui/src/app/useSubmission.ts
@@ -35,6 +35,13 @@ export const queueItemFromSlash = (displayCommand: string, expandedCommand: stri
   return queueItem(slashArgument(expandedCommand), display)
 }
 
+export const prepareSubmission = (display: string, tokens: ComposerToken[]) => ({
+  display,
+  text: expandTokens(tokens)(display)
+})
+
+export const shouldInterpolateSubmission = (display: string) => hasInterpolation(display)
+
 export function useSubmission(opts: UseSubmissionOptions) {
   const { appendMessage, composerActions, composerRefs, composerState, gw, setLastUserMsg, slashRef, submitRef, sys } =
     opts
@@ -72,10 +79,15 @@ export function useSubmission(opts: UseSubmissionOptions) {
   }, [composerState.input, composerState.inputBuf])
 
   const send = useCallback(
-    (text: string, showUserMessage = true, displayText?: string) => {
+    (
+      text: string,
+      showUserMessage = true,
+      displayText?: string,
+      expandOverride?: (value: string) => string
+    ) => {
       // Read tokens off the ref, not render state: a paste immediately followed
       // by Enter submits before React has re-rendered with the new token.
-      const expand = expandTokens(composerRefs.tokensRef.current)
+      const expand = expandOverride ?? expandTokens(composerRefs.tokensRef.current)
 
       submitPrompt(
         text,
@@ -228,8 +240,10 @@ export function useSubmission(opts: UseSubmissionOptions) {
       // nothing — a detached image can't be re-attached by recalling the text.
       // Idempotent on token-free text, so re-submitting a recalled entry is
       // stable.
-      const toHistory = expandTokens(composerRefs.tokensRef.current)(full)
-      const queuePayload = expandPasteTokens(composerRefs.tokensRef.current)(full)
+      const submissionTokens = [...composerRefs.tokensRef.current]
+      const submission = prepareSubmission(full, submissionTokens)
+      const toHistory = submission.text
+      const queuePayload = expandPasteTokens(submissionTokens)(full)
 
       if (looksLikeSlashCommand(full)) {
         appendMessage({ kind: 'slash', role: 'system', text: full })
@@ -299,13 +313,15 @@ export function useSubmission(opts: UseSubmissionOptions) {
         return handleBusyInput(queueItem(full))
       }
 
-      if (hasInterpolation(full)) {
+      if (shouldInterpolateSubmission(full)) {
         patchUiState({ busy: true })
 
-        return interpolate(full, send)
+        return interpolate(full, text =>
+          send(prepareSubmission(text, submissionTokens).text, true, text, value => value)
+        )
       }
 
-      send(full)
+      send(submission.text, true, submission.display, value => value)
     },
     [
       appendMessage,