diff --git a/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts b/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts
index a6b81d3a1df..2d1dd15ce52 100644
--- a/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts
+++ b/src/vs/workbench/contrib/terminal/common/terminalConfiguration.ts
@@ -634,7 +634,7 @@ const terminalConfiguration: IStringDictionary<IConfigurationPropertySchema> = {
 	},
 	[TerminalSettingId.ShellIntegrationTimeout]: {
 		restricted: true,
-		markdownDescription: localize('terminal.integrated.shellIntegration.timeout', "Configures the duration in milliseconds to wait for shell integration after launch before declaring it's not there. Set to {0} to skip the wait entirely, the default value {1} means the wait time is variable based on whether shell integration injection is enabled and whether it's a remote window. Values between 1 and 499 are clamped to 500ms. Consider setting this to {0} if you intentionally disabled shell integration, or a large value if your shell starts very slowly.", '`0`', '`-1`'),
+		markdownDescription: localize('terminal.integrated.shellIntegration.timeout', "Configures the duration in milliseconds to wait for shell integration after launch before declaring it's not there. Set to {0} to skip the wait entirely. The default value {1} uses a variable wait time based on whether shell integration injection is enabled and whether it's a remote window. Values between 1 and 499 are clamped to 500ms. Consider setting this to {0} if you intentionally disabled shell integration, or a large value if your shell starts very slowly.", '`0`', '`-1`'),
 		type: 'integer',
 		minimum: -1,
 		maximum: 60000,
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/noneExecuteStrategy.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/noneExecuteStrategy.ts
index f9391f329cc..f72379411ca 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/noneExecuteStrategy.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/noneExecuteStrategy.ts
@@ -92,18 +92,28 @@ export class NoneExecuteStrategy extends Disposable implements ITerminalExecuteS
 			// hasn't started processing the command yet.
 			if (startLine !== undefined) {
 				this._log('Waiting for cursor to move past start line');
-				await new Promise<void>(resolve => {
+				const cursorMovedPromise = new Promise<void>(resolve => {
 					const check = () => {
 						const buffer = xterm.raw.buffer.active;
 						const cursorLine = buffer.baseY + buffer.cursorY;
 						if (cursorLine > startLine) {
 							resolve();
-						} else {
-							store.add(Event.once(this._instance.onData)(() => check()));
 						}
 					};
+					const listener = this._instance.onData(() => check());
+					store.add(listener);
 					check();
 				});
+
+				const cursorMoveTimeout = new Promise<'timeout'>(resolve => {
+					const handle = setTimeout(() => resolve('timeout'), 5000);
+					store.add({ dispose: () => clearTimeout(handle) });
+				});
+
+				const raceResult = await Promise.race([cursorMovedPromise, cursorMoveTimeout]);
+				if (raceResult === 'timeout') {
+					this._log('Cursor did not move past start line before timeout, proceeding with idle detection');
+				}
 			}
 
 
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/strategyHelpers.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/strategyHelpers.ts
index 2830c7b90e9..28416349eda 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/strategyHelpers.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/browser/executeStrategy/strategyHelpers.ts
@@ -88,7 +88,7 @@ export function createAltBufferPromise(
  * This function removes (1) and (3) to isolate the actual output.
  */
 export function stripCommandEchoAndPrompt(output: string, commandLine: string, log?: (message: string) => void): string {
-	log?.(`stripCommandEchoAndPrompt input: ${JSON.stringify(output)}, commandLine: ${JSON.stringify(commandLine)}`);
+	log?.(`stripCommandEchoAndPrompt input: output length=${output.length}, commandLine length=${commandLine.length}`);
 
 	const result = _stripCommandEchoAndPromptOnce(output, commandLine, log);
 
@@ -172,7 +172,7 @@ function _stripCommandEchoAndPromptOnce(output: string, commandLine: string, log
 	}
 
 	const result = lines.slice(startIndex, endIndex).join('\n');
-	log?.(`stripCommandEchoAndPrompt result: ${JSON.stringify(result)} (startIndex=${startIndex}, endIndex=${endIndex}, totalLines=${lines.length})`);
+	log?.(`stripCommandEchoAndPrompt result: length=${result.length} (startIndex=${startIndex}, endIndex=${endIndex}, totalLines=${lines.length})`);
 	return result;
 }
 
@@ -247,12 +247,12 @@ export function findCommandEcho(output: string, commandLine: string, allowSuffix
 
 export function stripNewLinesAndBuildMapping(output: string): { strippedOutput: string; indexMapping: number[] } {
 	const indexMapping: number[] = [];
-	let strippedOutput = '';
+	const strippedChars: string[] = [];
 	for (let i = 0; i < output.length; i++) {
 		if (output[i] !== '\n') {
-			strippedOutput += output[i];
+			strippedChars.push(output[i]);
 			indexMapping.push(i);
 		}
 	}
-	return { strippedOutput, indexMapping };
+	return { strippedOutput: strippedChars.join(''), indexMapping };
 }
diff --git a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts
index e94af156a8f..e55ce632fd1 100644
--- a/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chatAgentTools/common/terminalChatAgentToolsConfiguration.ts
@@ -436,7 +436,7 @@ export const terminalChatAgentToolsConfiguration: IStringDictionary<IConfigurati
 		markdownDescription: localize('blockFileWrites.description', "Controls whether detected file write operations are blocked in the run in terminal tool. When detected, this will require explicit approval regardless of whether the command would normally be auto approved. Note that this cannot detect all possible methods of writing files, this is what is currently detected:\n\n- File redirection (detected via the bash or PowerShell tree sitter grammar)\n- `sed` in-place editing (`-i`, `-I`, `--in-place`)"),
 	},
 	[TerminalChatAgentToolsSettingId.ShellIntegrationTimeout]: {
-		markdownDescription: localize('shellIntegrationTimeout.description', "Configures the duration in milliseconds to wait for shell integration to be detected when the run in terminal tool launches a new terminal. Set to `0` to wait the minimum time, the default value `-1` means the wait time is variable based on the value of {0} and whether it's a remote window. A large value can be useful if your shell starts very slowly and a low value if you're intentionally not using shell integration.", `\`#${TerminalSettingId.ShellIntegrationEnabled}#\``),
+		markdownDescription: localize('shellIntegrationTimeout.description', "Configures the duration in milliseconds to wait for shell integration to be detected when the run in terminal tool launches a new terminal. Set to `0` to skip the wait entirely, the default value `-1` uses a variable wait time based on the value of {0} and whether it's a remote window. A large value can be useful if your shell starts very slowly.", `\`#${TerminalSettingId.ShellIntegrationEnabled}#\``),
 		type: 'integer',
 		minimum: -1,
 		maximum: 60000,