diff --git a/packages/cli/src/ui/components/InputPrompt.test.tsx b/packages/cli/src/ui/components/InputPrompt.test.tsx
index a4aaf6e9..11a0eb48 100644
--- a/packages/cli/src/ui/components/InputPrompt.test.tsx
+++ b/packages/cli/src/ui/components/InputPrompt.test.tsx
@@ -1211,6 +1211,43 @@ describe('InputPrompt', () => {
     });
   });
 
+  describe('multiline paste', () => {
+    it.each([
+      {
+        description: 'with \n newlines',
+        pastedText: 'This \n is \n a \n multiline \n paste.',
+      },
+      {
+        description: 'with extra slashes before \n newlines',
+        pastedText: 'This \\\n is \\\n a \\\n multiline \\\n paste.',
+      },
+      {
+        description: 'with \r\n newlines',
+        pastedText: 'This\r\nis\r\na\r\nmultiline\r\npaste.',
+      },
+    ])('should handle multiline paste $description', async ({ pastedText }) => {
+      const { stdin, unmount } = renderWithProviders(
+        <InputPrompt {...props} />,
+      );
+      await wait();
+
+      // Simulate a bracketed paste event from the terminal
+      stdin.write(`\x1b[200~${pastedText}\x1b[201~`);
+      await wait();
+
+      // Verify that the buffer's handleInput was called once with the full text
+      expect(props.buffer.handleInput).toHaveBeenCalledTimes(1);
+      expect(props.buffer.handleInput).toHaveBeenCalledWith(
+        expect.objectContaining({
+          paste: true,
+          sequence: pastedText,
+        }),
+      );
+
+      unmount();
+    });
+  });
+
   describe('enhanced input UX - double ESC clear functionality', () => {
     it('should clear buffer on second ESC press', async () => {
       const onEscapePromptChange = vi.fn();
diff --git a/packages/cli/src/ui/components/InputPrompt.tsx b/packages/cli/src/ui/components/InputPrompt.tsx
index dcfdace3..99a59c34 100644
--- a/packages/cli/src/ui/components/InputPrompt.tsx
+++ b/packages/cli/src/ui/components/InputPrompt.tsx
@@ -239,6 +239,12 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
         return;
       }
 
+      if (key.paste) {
+        // Ensure we never accidentally interpret paste as regular input.
+        buffer.handleInput(key);
+        return;
+      }
+
       if (vimHandleInput && vimHandleInput(key)) {
         return;
       }
diff --git a/packages/cli/src/ui/components/shared/text-buffer.ts b/packages/cli/src/ui/components/shared/text-buffer.ts
index 84bbdc9b..93f6e360 100644
--- a/packages/cli/src/ui/components/shared/text-buffer.ts
+++ b/packages/cli/src/ui/components/shared/text-buffer.ts
@@ -1833,6 +1833,13 @@ export function useTextBuffer({
     }): void => {
       const { sequence: input } = key;
 
+      if (key.paste) {
+        // Do not do any other processing on pastes so ensure we handle them
+        // before all other cases.
+        insert(input, { paste: key.paste });
+        return;
+      }
+
       if (
         key.name === 'return' ||
         input === '\r' ||
diff --git a/packages/cli/src/ui/contexts/KeypressContext.test.tsx b/packages/cli/src/ui/contexts/KeypressContext.test.tsx
index 01630229..caed50be 100644
--- a/packages/cli/src/ui/contexts/KeypressContext.test.tsx
+++ b/packages/cli/src/ui/contexts/KeypressContext.test.tsx
@@ -5,7 +5,7 @@
  */
 
 import React from 'react';
-import { renderHook, act } from '@testing-library/react';
+import { renderHook, act, waitFor } from '@testing-library/react';
 import { vi, Mock } from 'vitest';
 import {
   KeypressProvider,
@@ -28,18 +28,6 @@ vi.mock('ink', async (importOriginal) => {
   };
 });
 
-// Mock the 'readline' module
-vi.mock('readline', () => {
-  const mockedReadline = {
-    createInterface: vi.fn().mockReturnValue({ close: vi.fn() }),
-    emitKeypressEvents: vi.fn(),
-  };
-  return {
-    ...mockedReadline,
-    default: mockedReadline,
-  };
-});
-
 class MockStdin extends EventEmitter {
   isTTY = true;
   setRawMode = vi.fn();
@@ -47,6 +35,7 @@ class MockStdin extends EventEmitter {
   override removeListener = super.removeListener;
   write = vi.fn();
   resume = vi.fn();
+  pause = vi.fn();
 
   // Helper to simulate a keypress event
   pressKey(key: Partial<Key>) {
@@ -55,32 +44,16 @@ class MockStdin extends EventEmitter {
 
   // Helper to simulate a kitty protocol sequence
   sendKittySequence(sequence: string) {
-    // Kitty sequences come in multiple parts
-    // For example, ESC[13u comes as: ESC[ then 1 then 3 then u
-    // ESC[57414;2u comes as: ESC[ then 5 then 7 then 4 then 1 then 4 then ; then 2 then u
-    const escIndex = sequence.indexOf('\x1b[');
-    if (escIndex !== -1) {
-      // Send ESC[
-      this.emit('keypress', null, {
-        name: undefined,
-        sequence: '\x1b[',
-        ctrl: false,
-        meta: false,
-        shift: false,
-      });
+    this.emit('data', Buffer.from(sequence));
+  }
 
-      // Send the rest character by character
-      const rest = sequence.substring(escIndex + 2);
-      for (const char of rest) {
-        this.emit('keypress', null, {
-          name: /[a-zA-Z0-9]/.test(char) ? char : undefined,
-          sequence: char,
-          ctrl: false,
-          meta: false,
-          shift: false,
-        });
-      }
-    }
+  // Helper to simulate a paste event
+  sendPaste(text: string) {
+    const PASTE_MODE_PREFIX = `\x1b[200~`;
+    const PASTE_MODE_SUFFIX = `\x1b[201~`;
+    this.emit('data', Buffer.from(PASTE_MODE_PREFIX));
+    this.emit('data', Buffer.from(text));
+    this.emit('data', Buffer.from(PASTE_MODE_SUFFIX));
   }
 }
 
@@ -304,4 +277,37 @@ describe('KeypressContext - Kitty Protocol', () => {
       );
     });
   });
+
+  describe('paste mode', () => {
+    it('should handle multiline paste as a single event', async () => {
+      const keyHandler = vi.fn();
+      const pastedText = 'This \nis \na \nmultiline \npaste.';
+
+      const { result } = renderHook(() => useKeypressContext(), {
+        wrapper,
+      });
+
+      act(() => {
+        result.current.subscribe(keyHandler);
+      });
+
+      // Simulate a bracketed paste event
+      act(() => {
+        stdin.sendPaste(pastedText);
+      });
+
+      await waitFor(() => {
+        // Expect the handler to be called exactly once for the entire paste
+        expect(keyHandler).toHaveBeenCalledTimes(1);
+      });
+
+      // Verify the single event contains the full pasted text
+      expect(keyHandler).toHaveBeenCalledWith(
+        expect.objectContaining({
+          paste: true,
+          sequence: pastedText,
+        }),
+      );
+    });
+  });
 });
diff --git a/packages/cli/src/ui/contexts/KeypressContext.tsx b/packages/cli/src/ui/contexts/KeypressContext.tsx
index b1e70aed..eaf1819b 100644
--- a/packages/cli/src/ui/contexts/KeypressContext.tsx
+++ b/packages/cli/src/ui/contexts/KeypressContext.tsx
@@ -172,6 +172,29 @@ export function KeypressProvider({
     };
 
     const handleKeypress = (_: unknown, key: Key) => {
+      if (key.name === 'paste-start') {
+        isPaste = true;
+        return;
+      }
+      if (key.name === 'paste-end') {
+        isPaste = false;
+        broadcast({
+          name: '',
+          ctrl: false,
+          meta: false,
+          shift: false,
+          paste: true,
+          sequence: pasteBuffer.toString(),
+        });
+        pasteBuffer = Buffer.alloc(0);
+        return;
+      }
+
+      if (isPaste) {
+        pasteBuffer = Buffer.concat([pasteBuffer, Buffer.from(key.sequence)]);
+        return;
+      }
+
       if (key.name === 'return' && waitingForEnterAfterBackslash) {
         if (backslashTimeout) {
           clearTimeout(backslashTimeout);
@@ -278,29 +301,10 @@ export function KeypressProvider({
         }
       }
 
-      if (key.name === 'paste-start') {
-        isPaste = true;
-      } else if (key.name === 'paste-end') {
-        isPaste = false;
-        broadcast({
-          name: '',
-          ctrl: false,
-          meta: false,
-          shift: false,
-          paste: true,
-          sequence: pasteBuffer.toString(),
-        });
-        pasteBuffer = Buffer.alloc(0);
-      } else {
-        if (isPaste) {
-          pasteBuffer = Buffer.concat([pasteBuffer, Buffer.from(key.sequence)]);
-        } else {
-          if (key.name === 'return' && key.sequence === `${ESC}\r`) {
-            key.meta = true;
-          }
-          broadcast({ ...key, paste: isPaste });
-        }
+      if (key.name === 'return' && key.sequence === `${ESC}\r`) {
+        key.meta = true;
       }
+      broadcast({ ...key, paste: isPaste });
     };
 
     const handleRawKeypress = (data: Buffer) => {