diff --git a/packages/cli/src/ui/components/messages/ToolMessage.tsx b/packages/cli/src/ui/components/messages/ToolMessage.tsx
index 922f59d0..51d3dffb 100644
--- a/packages/cli/src/ui/components/messages/ToolMessage.tsx
+++ b/packages/cli/src/ui/components/messages/ToolMessage.tsx
@@ -47,7 +47,7 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
   const displayableResult = React.useMemo(
     () =>
       resultIsString
-        ? lines.slice(0, contentHeightEstimate).join('\n')
+        ? lines.slice(-contentHeightEstimate).join('\n')
         : resultDisplay,
     [lines, resultIsString, contentHeightEstimate, resultDisplay],
   );
@@ -66,8 +66,16 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
         {emphasis === 'high' && <TrailingIndicator />}
       </Box>
       {displayableResult && (
-        <Box paddingLeft={STATUS_INDICATOR_WIDTH} width="100%">
+        <Box paddingLeft={STATUS_INDICATOR_WIDTH} width="100%" marginTop={1}>
           <Box flexDirection="column">
+            {hiddenLines > 0 && (
+              <Box>
+                <Text color={Colors.SubtleComment}>
+                  ... first {hiddenLines} line{hiddenLines === 1 ? '' : 's'}{' '}
+                  hidden ...
+                </Text>
+              </Box>
+            )}
             {typeof displayableResult === 'string' && (
               <Box flexDirection="column">
                 <MarkdownDisplay
@@ -83,14 +91,6 @@ export const ToolMessage: React.FC<ToolMessageProps> = ({
                 filename={displayableResult.fileName}
               />
             )}
-            {hiddenLines > 0 && (
-              <Box>
-                <Text color={Colors.SubtleComment}>
-                  ... {hiddenLines} more line{hiddenLines === 1 ? '' : 's'}{' '}
-                  hidden ...
-                </Text>
-              </Box>
-            )}
           </Box>
         </Box>
       )}
diff --git a/packages/server/src/tools/shell.ts b/packages/server/src/tools/shell.ts
index b43b2d0a..388c1543 100644
--- a/packages/server/src/tools/shell.ts
+++ b/packages/server/src/tools/shell.ts
@@ -25,6 +25,8 @@ export interface ShellToolParams {
 }
 import { spawn } from 'child_process';
 
+const OUTPUT_UPDATE_INTERVAL_MS = 1000;
+
 export class ShellTool extends BaseTool<ShellToolParams, ToolResult> {
   static Name: string = 'execute_bash_command';
   private whitelist: Set<string> = new Set();
@@ -124,7 +126,7 @@ export class ShellTool extends BaseTool<ShellToolParams, ToolResult> {
   async execute(
     params: ShellToolParams,
     abortSignal: AbortSignal,
-    onOutputChunk?: (chunk: string) => void,
+    updateOutput?: (chunk: string) => void,
   ): Promise<ToolResult> {
     const validationError = this.validateToolParams(params);
     if (validationError) {
@@ -155,6 +157,19 @@ export class ShellTool extends BaseTool<ShellToolParams, ToolResult> {
     let exited = false;
     let stdout = '';
     let output = '';
+    let lastUpdateTime = Date.now();
+
+    const appendOutput = (str: string) => {
+      output += str;
+      if (
+        updateOutput &&
+        Date.now() - lastUpdateTime > OUTPUT_UPDATE_INTERVAL_MS
+      ) {
+        updateOutput(output);
+        lastUpdateTime = Date.now();
+      }
+    };
+
     shell.stdout.on('data', (data: Buffer) => {
       // continue to consume post-exit for background processes
       // removing listeners can overflow OS buffer and block subprocesses
@@ -162,10 +177,7 @@ export class ShellTool extends BaseTool<ShellToolParams, ToolResult> {
       if (!exited) {
         const str = data.toString();
         stdout += str;
-        output += str;
-        if (onOutputChunk) {
-          onOutputChunk(str);
-        }
+        appendOutput(str);
       }
     });
 
@@ -174,10 +186,7 @@ export class ShellTool extends BaseTool<ShellToolParams, ToolResult> {
       if (!exited) {
         const str = data.toString();
         stderr += str;
-        output += str;
-        if (onOutputChunk) {
-          onOutputChunk(str);
-        }
+        appendOutput(str);
       }
     });