diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/Terminal.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/Terminal.tsx
index 9a9736fd98b..480afe2a633 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/Terminal.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/Terminal.tsx
@@ -6,11 +6,7 @@ import { useEffect, useRef, useState } from "react";
 import { electronTrpc } from "renderer/lib/electron-trpc";
 import { useTabsStore } from "renderer/stores/tabs/store";
 import { useTerminalTheme } from "renderer/stores/theme";
-import {
-	ConnectionErrorOverlay,
-	RestoredModeOverlay,
-	SessionKilledOverlay,
-} from "./components";
+import { ConnectionErrorOverlay, SessionKilledOverlay } from "./components";
 import { getDefaultTerminalBg, type TerminalRendererRef } from "./helpers";
 import {
 	useFileLinkClick,
@@ -218,6 +214,11 @@ export const Terminal = ({ paneId, tabId, workspaceId }: TerminalProps) => {
 		xtermRef,
 	});
 
+	useEffect(() => {
+		if (!isRestoredMode) return;
+		handleStartShell();
+	}, [isRestoredMode, handleStartShell]);
+
 	const { xtermInstance, restartTerminal } = useTerminalLifecycle({
 		paneId,
 		tabIdRef,
@@ -308,9 +309,6 @@ export const Terminal = ({ paneId, tabId, workspaceId }: TerminalProps) => {
 			{connectionError && (
 				<ConnectionErrorOverlay onRetry={handleRetryConnection} />
 			)}
-			{isRestoredMode && (
-				<RestoredModeOverlay onStartShell={handleStartShell} />
-			)}
 			<div ref={terminalRef} className="h-full w-full" />
 		</div>
 	);
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/hooks/useTerminalColdRestore.ts b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/hooks/useTerminalColdRestore.ts
index ca2ca7e91f8..42f0c246b81 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/hooks/useTerminalColdRestore.ts
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/hooks/useTerminalColdRestore.ts
@@ -184,7 +184,7 @@ export function useTerminalColdRestore({
 		});
 
 		// Add visual separator
-		xterm.write("\r\n\x1b[90m─── New session ───\x1b[0m\r\n\r\n");
+		xterm.write("\r\n\x1b[90m─── Session Contents Restored ───\x1b[0m\r\n\r\n");
 
 		// Reset state for new session
 		isStreamReadyRef.current = false;