diff --git a/packages/cli/src/ui/hooks/useGeminiStream.ts b/packages/cli/src/ui/hooks/useGeminiStream.ts
index 1c860501..7a7484df 100644
--- a/packages/cli/src/ui/hooks/useGeminiStream.ts
+++ b/packages/cli/src/ui/hooks/useGeminiStream.ts
@@ -31,7 +31,7 @@ import { isAtCommand } from '../utils/commandUtils.js';
 import { useSlashCommandProcessor } from './slashCommandProcessor.js';
 import { useShellCommandProcessor } from './shellCommandProcessor.js';
 import { handleAtCommand } from './atCommandProcessor.js';
-import { findSafeSplitPoint } from '../utils/markdownUtilities.js';
+import { findLastSafeSplitPoint } from '../utils/markdownUtilities.js';
 import { useStateAndRef } from './useStateAndRef.js';
 import { UseHistoryManagerReturn } from './useHistoryManager.js';
 
@@ -174,14 +174,12 @@ export const useGeminiStream = (
           signal,
         );
 
-        let currentGeminiText = '';
+        let geminiMessageBuffer = '';
 
         for await (const event of stream) {
           if (signal.aborted) break;
 
           if (event.type === ServerGeminiEventType.Content) {
-            currentGeminiText += event.value;
-
             if (pendingHistoryItemRef.current?.type !== 'gemini') {
               // Flush out existing pending history item.
               if (pendingHistoryItemRef.current) {
@@ -189,19 +187,22 @@ export const useGeminiStream = (
               }
               setPendingHistoryItem({
                 type: 'gemini',
-                text: currentGeminiText,
+                text: '',
               });
+              geminiMessageBuffer = '';
             }
 
-            // Split large messages for better rendering performance
-            const splitPoint = findSafeSplitPoint(currentGeminiText);
-            if (splitPoint === currentGeminiText.length) {
+            geminiMessageBuffer += event.value;
+
+            // Split large messages for better rendering performance. Ideally,
+            // we should maximize the amount of output sent to <Static />.
+            const splitPoint = findLastSafeSplitPoint(geminiMessageBuffer);
+            if (splitPoint === geminiMessageBuffer.length) {
               // Update the existing message with accumulated content
-              setPendingHistoryItem((pending) => ({
-                // There might be a more typesafe way to do this.
-                ...pending!,
-                text: currentGeminiText,
-              }));
+              setPendingHistoryItem({
+                type: 'gemini',
+                text: geminiMessageBuffer,
+              });
             } else {
               // This indicates that we need to split up this Gemini Message.
               // Splitting a message is primarily a performance consideration. There is a
@@ -211,21 +212,19 @@ export const useGeminiStream = (
               // multiple times per-second (as streaming occurs). Prior to this change you'd
               // see heavy flickering of the terminal. This ensures that larger messages get
               // broken up so that there are more "statically" rendered.
-              const beforeText = currentGeminiText.substring(0, splitPoint);
-              const afterText = currentGeminiText.substring(splitPoint);
-              currentGeminiText = afterText; // Continue accumulating from split point
+              const beforeText = geminiMessageBuffer.substring(0, splitPoint);
+              const afterText = geminiMessageBuffer.substring(splitPoint);
+              geminiMessageBuffer = afterText; // Continue accumulating from split point
               addItem(
-                { type: 'gemini_content', text: beforeText },
+                { type: 'gemini', text: beforeText },
                 userMessageTimestamp,
               );
               setPendingHistoryItem({
-                type: 'gemini_content',
+                type: 'gemini',
                 text: afterText,
               });
             }
           } else if (event.type === ServerGeminiEventType.ToolCallRequest) {
-            currentGeminiText = '';
-
             const { callId, name, args } = event.value;
             const cliTool = toolRegistry.getTool(name);
             if (!cliTool) {
diff --git a/packages/cli/src/ui/utils/markdownUtilities.ts b/packages/cli/src/ui/utils/markdownUtilities.ts
index 94492b8c..96c2ba39 100644
--- a/packages/cli/src/ui/utils/markdownUtilities.ts
+++ b/packages/cli/src/ui/utils/markdownUtilities.ts
@@ -184,3 +184,35 @@ export const findSafeSplitPoint = (
   // to keep the entire content as one piece.
   return content.length;
 };
+
+export const findLastSafeSplitPoint = (content: string) => {
+  const enclosingBlockStart = findEnclosingCodeBlockStart(
+    content,
+    content.length,
+  );
+  if (enclosingBlockStart !== -1) {
+    // The end of the content is contained in a code block. Split right before.
+    return enclosingBlockStart;
+  }
+
+  // Search for the last double newline (\n\n) not in a code block.
+  let searchStartIndex = content.length;
+  while (searchStartIndex >= 0) {
+    const dnlIndex = content.lastIndexOf('\n\n', searchStartIndex);
+    if (dnlIndex === -1) {
+      // No more double newlines found after idealMaxLength
+      break;
+    }
+
+    const potentialSplitPoint = dnlIndex + 2;
+    if (!isIndexInsideCodeBlock(content, potentialSplitPoint)) {
+      return potentialSplitPoint;
+    }
+
+    searchStartIndex = potentialSplitPoint; // Continue search after the found \n\n
+  }
+
+  // If no safe double newline found after idealMaxLength, return content.length
+  // to keep the entire content as one piece.
+  return content.length;
+};