diff --git a/crates/goose-cli/src/session/builder.rs b/crates/goose-cli/src/session/builder.rs
index 8ad2b0422352..9f711aeb3356 100644
--- a/crates/goose-cli/src/session/builder.rs
+++ b/crates/goose-cli/src/session/builder.rs
@@ -187,8 +187,7 @@ async fn offer_extension_debugging_help(
     // Create a debugging prompt with context about the extension failure
     let debug_prompt = format!(
         "I'm having trouble starting an extension called '{}'. Here's the error I encountered:\n\n{}\n\nCan you help me diagnose what might be wrong and suggest how to fix it? Please consider common issues like:\n- Missing dependencies or tools\n- Configuration problems\n- Network connectivity (for remote extensions)\n- Permission issues\n- Path or environment variable problems",
-        extension_name,
-        error_message
+        extension_name, error_message
     );
 
     // Create a minimal agent for debugging
diff --git a/crates/goose-cli/src/session/mod.rs b/crates/goose-cli/src/session/mod.rs
index bf655a698483..10c5f3a8072d 100644
--- a/crates/goose-cli/src/session/mod.rs
+++ b/crates/goose-cli/src/session/mod.rs
@@ -207,7 +207,9 @@ pub async fn classify_planner_response(
     message_text: String,
     provider: Arc<dyn Provider>,
 ) -> Result<PlannerResponseType> {
-    let prompt = format!("The text below is the output from an AI model which can either provide a plan or list of clarifying questions. Based on the text below, decide if the output is a \"plan\" or \"clarifying questions\".\n---\n{message_text}");
+    let prompt = format!(
+        "The text below is the output from an AI model which can either provide a plan or list of clarifying questions. Based on the text below, decide if the output is a \"plan\" or \"clarifying questions\".\n---\n{message_text}"
+    );
 
     let message = Message::user().with_text(&prompt);
     let model_config = provider.get_model_config();
@@ -628,6 +630,7 @@ impl CliSession {
 
                 let _provider = self.agent.provider().await?;
 
+                println!();
                 output::run_status_hook("thinking");
                 output::show_thinking();
                 let start_time = Instant::now();
@@ -1751,7 +1754,9 @@ fn display_log_notification(
                 let _ = progress_bars.hide();
             }
             if !is_json_mode {
-                print!("{}", formatted_message);
+                for line in formatted_message.lines() {
+                    println!("    {}", console::style(line).dim());
+                }
                 std::io::stdout().flush().unwrap();
             }
         } else if ntype == "shell_output" {
@@ -1766,7 +1771,7 @@ fn display_log_notification(
                     let _ = progress_bars.hide();
                 }
                 if !is_json_mode {
-                    println!("{}", formatted_message);
+                    println!("    {}", console::style(formatted_message).dim());
                 }
             }
         }
diff --git a/crates/goose-cli/src/session/output.rs b/crates/goose-cli/src/session/output.rs
index 950cd021fdd8..221891b675ee 100644
--- a/crates/goose-cli/src/session/output.rs
+++ b/crates/goose-cli/src/session/output.rs
@@ -235,7 +235,7 @@ pub fn render_message(message: &Message, debug: bool) {
             },
             MessageContent::Text(text) => print_markdown(&text.text, theme),
             MessageContent::ToolRequest(req) => render_tool_request(req, theme, debug),
-            MessageContent::ToolResponse(resp) => render_tool_response(resp, theme, debug),
+            MessageContent::ToolResponse(resp) => render_tool_response(resp, debug),
             MessageContent::Image(image) => {
                 println!("Image: [data: {}, type: {}]", image.data, image.mime_type);
             }
@@ -295,7 +295,7 @@ pub fn render_message_streaming(
             }
             MessageContent::ToolResponse(resp) => {
                 flush_markdown_buffer(buffer, theme);
-                render_tool_response(resp, theme, debug);
+                render_tool_response(resp, debug);
             }
             MessageContent::ActionRequired(action) => {
                 flush_markdown_buffer(buffer, theme);
@@ -491,7 +491,7 @@ fn render_tool_request(req: &ToolRequest, theme: Theme, debug: bool) {
     }
 }
 
-fn render_tool_response(resp: &ToolResponse, theme: Theme, debug: bool) {
+fn render_tool_response(resp: &ToolResponse, debug: bool) {
     let config = Config::global();
 
     match &resp.tool_result {
@@ -519,11 +519,52 @@ fn render_tool_response(resp: &ToolResponse, theme: Theme, debug: bool) {
                 if debug {
                     println!("{:#?}", content);
                 } else if let Some(text) = content.as_text() {
-                    print_markdown(&text.text, theme);
+                    print_tool_output(&text.text);
                 }
             }
         }
-        Err(e) => print_markdown(&e.to_string(), theme),
+        Err(e) => {
+            println!("    {}", style(e.to_string()).red().dim());
+        }
+    }
+}
+
+fn print_tool_output(text: &str) {
+    if text.is_empty() {
+        return;
+    }
+    if !std::io::stdout().is_terminal() {
+        print!("{}", text);
+        return;
+    }
+    let max_lines = if get_show_full_tool_output() {
+        usize::MAX
+    } else {
+        20
+    };
+    let lines: Vec<&str> = text.lines().collect();
+    if lines.len() <= max_lines {
+        for line in &lines {
+            println!("    {}", style(line).dim());
+        }
+    } else {
+        let head = max_lines / 2;
+        let tail = max_lines - head;
+        for line in &lines[..head] {
+            println!("    {}", style(line).dim());
+        }
+        println!(
+            "    {}",
+            style(format!(
+                "... ({} lines hidden, /toggle to show all)",
+                lines.len() - head - tail
+            ))
+            .dim()
+            .italic()
+        );
+        for line in &lines[lines.len() - tail..] {
+            println!("    {}", style(line).dim());
+        }
     }
 }
 
@@ -904,6 +945,7 @@ fn print_tool_header(call: &CallToolRequestParams) {
         )
     };
     println!();
+    println!("  {}", style("─".repeat(40)).dim());
     println!("{}", tool_header);
 }
 
diff --git a/crates/goose-cli/src/session/task_execution_display/mod.rs b/crates/goose-cli/src/session/task_execution_display/mod.rs
index 434c777271a2..8c9d3a7e3dbd 100644
--- a/crates/goose-cli/src/session/task_execution_display/mod.rs
+++ b/crates/goose-cli/src/session/task_execution_display/mod.rs
@@ -9,10 +9,6 @@ use std::sync::atomic::{AtomicBool, Ordering};
 #[cfg(test)]
 mod tests;
 
-const CLEAR_SCREEN: &str = "\x1b[2J\x1b[H";
-const MOVE_TO_PROGRESS_LINE: &str = "\x1b[4;1H";
-const CLEAR_TO_EOL: &str = "\x1b[K";
-const CLEAR_BELOW: &str = "\x1b[J";
 pub const TASK_EXECUTION_NOTIFICATION_TYPE: &str = "task_execution";
 
 static INITIAL_SHOWN: AtomicBool = AtomicBool::new(false);
@@ -85,18 +81,14 @@ fn format_tasks_update_from_event(event: &TaskExecutionNotificationEvent) -> Str
         let mut display = String::new();
 
         if !INITIAL_SHOWN.swap(true, Ordering::SeqCst) {
-            display.push_str(CLEAR_SCREEN);
             display.push_str("🎯 Task Execution Dashboard\n");
             display.push_str("═══════════════════════════\n\n");
-        } else {
-            display.push_str(MOVE_TO_PROGRESS_LINE);
         }
 
         display.push_str(&format!(
-            "📊 Progress: {} total | ⏳ {} pending | 🏃 {} running | ✅ {} completed | ❌ {} failed", 
+            "📊 Progress: {} total | ⏳ {} pending | 🏃 {} running | ✅ {} completed | ❌ {} failed\n\n",
             stats.total, stats.pending, stats.running, stats.completed, stats.failed
         ));
-        display.push_str(&format!("{}\n\n", CLEAR_TO_EOL));
 
         let mut sorted_tasks = tasks.clone();
         sorted_tasks.sort_by(|a, b| a.id.cmp(&b.id));
@@ -105,7 +97,6 @@ fn format_tasks_update_from_event(event: &TaskExecutionNotificationEvent) -> Str
             display.push_str(&format_task_display(&task));
         }
 
-        display.push_str(CLEAR_BELOW);
         display
     } else {
         String::new()
@@ -155,25 +146,22 @@ fn format_task_display(task: &TaskInfo) -> String {
     };
 
     task_display.push_str(&format!(
-        "{} {} ({}){}\n",
-        status_icon, task.task_name, task.task_type, CLEAR_TO_EOL
+        "{} {} ({})\n",
+        status_icon, task.task_name, task.task_type
     ));
 
     if !task.task_metadata.is_empty() {
-        task_display.push_str(&format!(
-            "   📋 Parameters: {}{}\n",
-            task.task_metadata, CLEAR_TO_EOL
-        ));
+        task_display.push_str(&format!("   📋 Parameters: {}\n", task.task_metadata));
     }
 
     if let Some(duration_secs) = task.duration_secs {
-        task_display.push_str(&format!("   ⏱️  {:.1}s{}\n", duration_secs, CLEAR_TO_EOL));
+        task_display.push_str(&format!("   ⏱️  {:.1}s\n", duration_secs));
     }
 
     if matches!(task.status, TaskStatus::Running) && !task.current_output.trim().is_empty() {
         let processed_output = process_output_for_display(&task.current_output);
         if !processed_output.is_empty() {
-            task_display.push_str(&format!("   💬 {}{}\n", processed_output, CLEAR_TO_EOL));
+            task_display.push_str(&format!("   💬 {}\n", processed_output));
         }
     }
 
@@ -181,7 +169,7 @@ fn format_task_display(task: &TaskInfo) -> String {
         if let Some(result_data) = &task.result_data {
             let result_preview = format_result_data_for_display(result_data);
             if !result_preview.is_empty() {
-                task_display.push_str(&format!("   📄 {}{}\n", result_preview, CLEAR_TO_EOL));
+                task_display.push_str(&format!("   📄 {}\n", result_preview));
             }
         }
     }
@@ -189,14 +177,10 @@ fn format_task_display(task: &TaskInfo) -> String {
     if matches!(task.status, TaskStatus::Failed) {
         if let Some(error) = &task.error {
             let error_preview = safe_truncate(error, 80);
-            task_display.push_str(&format!(
-                "   ⚠️  {}{}\n",
-                error_preview.replace('\n', " "),
-                CLEAR_TO_EOL
-            ));
+            task_display.push_str(&format!("   ⚠️  {}\n", error_preview.replace('\n', " ")));
         }
     }
 
-    task_display.push_str(&format!("{}\n", CLEAR_TO_EOL));
+    task_display.push('\n');
     task_display
 }
diff --git a/crates/goose-cli/src/session/task_execution_display/tests.rs b/crates/goose-cli/src/session/task_execution_display/tests.rs
index c86b62258ecd..df8cf14a6ec3 100644
--- a/crates/goose-cli/src/session/task_execution_display/tests.rs
+++ b/crates/goose-cli/src/session/task_execution_display/tests.rs
@@ -145,7 +145,7 @@ fn test_format_tasks_update_from_event() {
 
     let result2 = format_tasks_update_from_event(&event);
     assert!(!result2.contains("🎯 Task Execution Dashboard"));
-    assert!(result2.contains(MOVE_TO_PROGRESS_LINE));
+    assert!(result2.contains("📊 Progress:"));
 }
 
 #[test]