diff --git a/apps/desktop/src/main/terminal-host/session-lifecycle.test.ts b/apps/desktop/src/main/terminal-host/session-lifecycle.test.ts
index 19e456cb5e4..6b0b4691dbf 100644
--- a/apps/desktop/src/main/terminal-host/session-lifecycle.test.ts
+++ b/apps/desktop/src/main/terminal-host/session-lifecycle.test.ts
@@ -686,6 +686,11 @@ describe("Terminal Host Session Lifecycle", () => {
 
 				await sendRequest(control, createRequest);
 
+				const isReady = await waitForSessionReady(control, "test-session-kill");
+				expect(isReady).toBe(true);
+
+				const exitPromise = waitForEvent(stream, "exit", 5000);
+
 				// Kill session
 				const killRequest: IpcRequest = {
 					id: "test-kill-2",
@@ -699,7 +704,7 @@ describe("Terminal Host Session Lifecycle", () => {
 				expect(killResponse.ok).toBe(true);
 
 				// Wait for exit event
-				const exitEvent = await waitForEvent(stream, "exit", 5000);
+				const exitEvent = await exitPromise;
 				expect(exitEvent.sessionId).toBe("test-session-kill");
 			} finally {
 				control.destroy();
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx
index 46ec01f90ec..2453df26867 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/ChangesContent/components/DiffViewer/DiffViewer.tsx
@@ -75,6 +75,18 @@ export function DiffViewer({
 	const [isEditorMounted, setIsEditorMounted] = useState(false);
 	const hasScrolledToFirstDiffRef = useRef(false);
 
+	useEffect(() => {
+		if (!isMonacoReady) return;
+		if (!isEditorMounted) return;
+
+		requestAnimationFrame(() => {
+			const modifiedEditor = modifiedEditorRef.current;
+			if (modifiedEditor) {
+				modifiedEditor.layout();
+			}
+		});
+	}, [isMonacoReady, isEditorMounted]);
+
 	// biome-ignore lint/correctness/useExhaustiveDependencies: Reset on file change only
 	useEffect(() => {
 		hasScrolledToFirstDiffRef.current = false;
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/TabPane.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/TabPane.tsx
index d2f4aed315f..8e82a2d5289 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/TabPane.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/TabPane.tsx
@@ -16,7 +16,6 @@ interface TabPaneProps {
 	paneId: string;
 	path: MosaicBranch[];
 	isActive: boolean;
-	isTabVisible: boolean;
 	tabId: string;
 	workspaceId: string;
 	splitPaneAuto: (
@@ -46,7 +45,6 @@ export function TabPane({
 	paneId,
 	path,
 	isActive,
-	isTabVisible,
 	tabId,
 	workspaceId,
 	splitPaneAuto,
@@ -125,11 +123,7 @@ export function TabPane({
 				onMoveToNewTab={onMoveToNewTab}
 			>
 				<div ref={terminalContainerRef} className="w-full h-full">
-					<Terminal
-						tabId={paneId}
-						workspaceId={workspaceId}
-						isTabVisible={isTabVisible}
-					/>
+					<Terminal tabId={paneId} workspaceId={workspaceId} />
 				</div>
 			</TabContentContextMenu>
 		</BasePaneWindow>
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/index.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/index.tsx
index 6b7e00c4dbd..4e3355474a7 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/index.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/TabView/index.tsx
@@ -21,10 +21,9 @@ import { TabPane } from "./TabPane";
 
 interface TabViewProps {
 	tab: Tab;
-	isTabVisible?: boolean;
 }
 
-export function TabView({ tab, isTabVisible = true }: TabViewProps) {
+export function TabView({ tab }: TabViewProps) {
 	const updateTabLayout = useTabsStore((s) => s.updateTabLayout);
 	const removePane = useTabsStore((s) => s.removePane);
 	const removeTab = useTabsStore((s) => s.removeTab);
@@ -149,7 +148,6 @@ export function TabView({ tab, isTabVisible = true }: TabViewProps) {
 					paneId={paneId}
 					path={path}
 					isActive={isActive}
-					isTabVisible={isTabVisible}
 					tabId={tab.id}
 					workspaceId={tab.workspaceId}
 					splitPaneAuto={splitPaneAuto}
@@ -166,7 +164,6 @@ export function TabView({ tab, isTabVisible = true }: TabViewProps) {
 		[
 			tabPanes,
 			focusedPaneId,
-			isTabVisible,
 			tab.id,
 			tab.workspaceId,
 			worktreePath,
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 802aee8f0cc..40f9073fff4 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
@@ -94,11 +94,7 @@ type CreateOrAttachResult = {
 	};
 };
 
-export const Terminal = ({
-	tabId,
-	workspaceId,
-	isTabVisible,
-}: TerminalProps) => {
+export const Terminal = ({ tabId, workspaceId }: TerminalProps) => {
 	const paneId = tabId;
 	// Use granular selectors to avoid re-renders when other panes change
 	const pane = useTabsStore((s) => s.panes[paneId]);
@@ -160,8 +156,6 @@ export const Terminal = ({
 	const initialThemeRef = useRef(terminalTheme);
 
 	const isFocused = focusedPaneId === paneId;
-	const isTabVisibleRef = useRef(isTabVisible);
-	isTabVisibleRef.current = isTabVisible;
 
 	// Gate streaming until initial state restoration is applied to avoid interleaving output.
 	const isStreamReadyRef = useRef(false);
@@ -972,16 +966,13 @@ export const Terminal = ({
 	}, [isFocused]);
 
 	useEffect(() => {
-		if (isFocused && isTabVisible && xtermRef.current) {
-			xtermRef.current.focus();
-		}
-	}, [isFocused, isTabVisible]);
+		const xterm = xtermRef.current;
+		if (!xterm) return;
 
-	useEffect(() => {
-		if (!isTabVisible && xtermRef.current) {
-			xtermRef.current.blur();
+		if (isFocused) {
+			xterm.focus();
 		}
-	}, [isTabVisible]);
+	}, [isFocused]);
 
 	useAppHotkey(
 		"FIND_IN_TERMINAL",
@@ -1124,9 +1115,6 @@ export const Terminal = ({
 			if (isRestoredModeRef.current || connectionErrorRef.current) {
 				return;
 			}
-			if (!isTabVisibleRef.current) {
-				return;
-			}
 			if (isExitedRef.current) {
 				if (!isFocusedRef.current || wasKilledByUserRef.current) {
 					return;
@@ -1145,9 +1133,6 @@ export const Terminal = ({
 			if (isRestoredModeRef.current || connectionErrorRef.current) {
 				return;
 			}
-			if (!isTabVisibleRef.current) {
-				return;
-			}
 			const { domEvent } = event;
 			if (domEvent.key === "Enter") {
 				// Don't auto-title from keyboard when in alternate screen (TUI apps like vim, codex)
@@ -1197,7 +1182,7 @@ export const Terminal = ({
 
 		const cancelInitialAttach = scheduleTerminalAttach({
 			paneId,
-			priority: isTabVisible ? (isFocusedRef.current ? 0 : 1) : 2,
+			priority: isFocusedRef.current ? 0 : 1,
 			run: (done) => {
 				if (isTerminalKilledByUser(paneId)) {
 					wasKilledByUserRef.current = true;
@@ -1338,7 +1323,7 @@ export const Terminal = ({
 		};
 
 		const handleWrite = (data: string) => {
-			if (!isTabVisibleRef.current || isExitedRef.current) {
+			if (isExitedRef.current) {
 				return;
 			}
 			writeRef.current({ paneId, data });
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/types.ts b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/types.ts
index 2a99ae85548..aa767114c9a 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/types.ts
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/Terminal/types.ts
@@ -1,7 +1,6 @@
 export interface TerminalProps {
 	tabId: string;
 	workspaceId: string;
-	isTabVisible: boolean;
 }
 
 export type TerminalStreamEvent =
diff --git a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/index.tsx b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/index.tsx
index b6f6bd21314..5751f508037 100644
--- a/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/index.tsx
+++ b/apps/desktop/src/renderer/screens/main/components/WorkspaceView/ContentView/TabsContent/index.tsx
@@ -1,40 +1,21 @@
 import { useParams } from "@tanstack/react-router";
-import { useEffect, useMemo, useState } from "react";
-import { electronTrpc } from "renderer/lib/electron-trpc";
+import { useMemo } from "react";
 import { useSidebarStore } from "renderer/stores";
 import {
 	MAX_SIDEBAR_WIDTH,
 	MIN_SIDEBAR_WIDTH,
 } from "renderer/stores/sidebar-state";
 import { useTabsStore } from "renderer/stores/tabs/store";
-import type { Pane, Tab } from "renderer/stores/tabs/types";
-import {
-	extractPaneIdsFromLayout,
-	resolveActiveTabIdForWorkspace,
-} from "renderer/stores/tabs/utils";
+import { resolveActiveTabIdForWorkspace } from "renderer/stores/tabs/utils";
 import { ResizablePanel } from "../../../ResizablePanel";
 import { Sidebar } from "../../Sidebar";
 import { EmptyTabView } from "./EmptyTabView";
 import { TabView } from "./TabView";
 
-const WARM_TERMINAL_TAB_LIMIT = 8;
-
-/**
- * Check if a tab contains at least one terminal pane.
- * Used to determine which tabs need to stay mounted for persistence.
- */
-function hasTerminalPane(tab: Tab, panes: Record<string, Pane>): boolean {
-	const paneIds = extractPaneIdsFromLayout(tab.layout);
-	return paneIds.some((paneId) => panes[paneId]?.type === "terminal");
-}
-
 export function TabsContent() {
 	const { workspaceId: activeWorkspaceId } = useParams({ strict: false });
-	const { data: terminalPersistence } =
-		electronTrpc.settings.getTerminalPersistence.useQuery();
 	const allTabs = useTabsStore((s) => s.tabs);
 	const activeTabIds = useTabsStore((s) => s.activeTabIds);
-	const panes = useTabsStore((s) => s.panes);
 	const tabHistoryStacks = useTabsStore((s) => s.tabHistoryStacks);
 
 	const {
@@ -66,118 +47,11 @@ export function TabsContent() {
 		return allTabs.find((tab) => tab.id === activeTabId) || null;
 	}, [activeTabId, allTabs]);
 
-	const activeTabHasTerminal = useMemo(() => {
-		if (!tabToRender) return false;
-		return hasTerminalPane(tabToRender, panes);
-	}, [tabToRender, panes]);
-
-	// Per-run warm set of terminal tab IDs (MRU order). Not persisted.
-	const [warmTerminalTabIds, setWarmTerminalTabIds] = useState<string[]>([]);
-
-	// Track terminal tab visits to keep a bounded set mounted for smooth switching.
-	useEffect(() => {
-		if (!terminalPersistence) return;
-		if (!activeTabId) return;
-		if (!activeTabHasTerminal) return;
-
-		setWarmTerminalTabIds((prev) => {
-			const next = [activeTabId, ...prev.filter((id) => id !== activeTabId)];
-			return next.slice(0, WARM_TERMINAL_TAB_LIMIT);
-		});
-	}, [terminalPersistence, activeTabId, activeTabHasTerminal]);
-
-	// When terminal persistence is enabled, keep a bounded set of terminal tabs
-	// mounted across workspace/tab switches. This prevents TUI white screen issues
-	// for recently used terminals by avoiding the unmount/remount cycle that
-	// requires complex reattach/rehydration, while avoiding startup fan-out.
-	// Non-terminal tabs use normal unmount behavior to save memory.
-	// Uses visibility:hidden (not display:none) to preserve xterm dimensions.
-	if (terminalPersistence) {
-		// Partition tabs: a bounded set of terminal tabs stay mounted, non-terminal tabs unmount when inactive.
-		const terminalTabs = allTabs.filter((tab) => hasTerminalPane(tab, panes));
-		const terminalTabsById = new Map(terminalTabs.map((tab) => [tab.id, tab]));
-
-		const warmIdsFiltered = warmTerminalTabIds.filter((id) =>
-			terminalTabsById.has(id),
-		);
-
-		// Ensure active terminal tab is included in the mounted set even before the
-		// warm-set effect runs (first render after tab switch).
-		const terminalTabIdsToRender = (() => {
-			const ids = [...warmIdsFiltered];
-			if (activeTabHasTerminal && activeTabId && !ids.includes(activeTabId)) {
-				ids.unshift(activeTabId);
-			}
-			return ids.slice(0, WARM_TERMINAL_TAB_LIMIT);
-		})();
-
-		const terminalTabsToRender = terminalTabIdsToRender
-			.map((id) => terminalTabsById.get(id))
-			.filter((tab): tab is Tab => !!tab);
-
-		const activeNonTerminalTab =
-			tabToRender && !activeTabHasTerminal ? tabToRender : null;
-
-		return (
-			<div className="flex-1 min-h-0 flex overflow-hidden">
-				<div className="relative flex-1 min-w-0">
-					{/* Terminal tabs: keep mounted with visibility toggle */}
-					{terminalTabsToRender.map((tab) => {
-						const isVisible =
-							tab.workspaceId === activeWorkspaceId && tab.id === activeTabId;
-
-						return (
-							<div
-								key={tab.id}
-								className="absolute inset-0"
-								style={{
-									visibility: isVisible ? "visible" : "hidden",
-									pointerEvents: isVisible ? "auto" : "none",
-								}}
-							>
-								<TabView tab={tab} isTabVisible={isVisible} />
-							</div>
-						);
-					})}
-					{/* Active non-terminal tab: render normally (unmounts when switching) */}
-					{activeNonTerminalTab && (
-						<div className="absolute inset-0">
-							<TabView tab={activeNonTerminalTab} isTabVisible />
-						</div>
-					)}
-					{/* Fallback: show empty view without unmounting terminal tabs */}
-					{!activeNonTerminalTab && !tabToRender && (
-						<div className="absolute inset-0 overflow-hidden">
-							<EmptyTabView />
-						</div>
-					)}
-				</div>
-				{isSidebarOpen && (
-					<ResizablePanel
-						width={sidebarWidth}
-						onWidthChange={setSidebarWidth}
-						isResizing={isResizing}
-						onResizingChange={setIsResizing}
-						minWidth={MIN_SIDEBAR_WIDTH}
-						maxWidth={MAX_SIDEBAR_WIDTH}
-						handleSide="left"
-					>
-						<Sidebar />
-					</ResizablePanel>
-				)}
-			</div>
-		);
-	}
-
 	// Original behavior when persistence disabled: only render active tab
 	return (
 		<div className="flex-1 min-h-0 flex overflow-hidden">
 			<div className="flex-1 min-w-0 overflow-hidden">
-				{tabToRender ? (
-					<TabView tab={tabToRender} isTabVisible />
-				) : (
-					<EmptyTabView />
-				)}
+				{tabToRender ? <TabView tab={tabToRender} /> : <EmptyTabView />}
 			</div>
 			{isSidebarOpen && (
 				<ResizablePanel