diff --git a/packages/pi-coding-agent/src/modes/interactive/components/custom-editor.ts b/packages/pi-coding-agent/src/modes/interactive/components/custom-editor.ts
index 74fcc7767..b6968460c 100644
--- a/packages/pi-coding-agent/src/modes/interactive/components/custom-editor.ts
+++ b/packages/pi-coding-agent/src/modes/interactive/components/custom-editor.ts
@@ -1,4 +1,4 @@
-import { Editor, type EditorOptions, type EditorTheme, type TUI } from "@gsd/pi-tui";
+import { Editor, type EditorOptions, type EditorTheme, type TUI, isKittyProtocolActive } from "@gsd/pi-tui";
 import type { AppAction, KeybindingsManager } from "../../../core/keybindings.js";
 
 /**
@@ -69,6 +69,13 @@ export class CustomEditor extends Editor {
 		// Check all other app actions
 		for (const [action, handler] of this.actionHandlers) {
 			if (action !== "interrupt" && action !== "exit" && this.keybindings.matches(data, action)) {
+				// When kitty protocol is not active, \x1b\r is ambiguous:
+				// it could be alt+enter (followUp) or shift+enter mapped via /terminal-setup.
+				// Prioritize newLine since that's what terminal-setup configures.
+				// Alt+enter followUp still works in kitty-protocol terminals.
+				if (action === "followUp" && !isKittyProtocolActive() && data === "\x1b\r") {
+					break; // Fall through to parent editor's newLine handling
+				}
 				handler();
 				return;
 			}
diff --git a/packages/pi-tui/src/components/editor.ts b/packages/pi-tui/src/components/editor.ts
index ae8c6bb77..35508bc55 100644
--- a/packages/pi-tui/src/components/editor.ts
+++ b/packages/pi-tui/src/components/editor.ts
@@ -182,7 +182,7 @@ export class Editor implements Component, Focusable {
 	private undoStack = new UndoStack<EditorState>();
 	private textVersion = 0;
 	private cachedText: string | null = null;
-	private layoutCache: { width: number; textVersion: number; lines: LayoutLine[] } | null = null;
+	private layoutCache: { width: number; textVersion: number; cursorLine: number; cursorCol: number; lines: LayoutLine[] } | null = null;
 	private visualLineMapCache: { width: number; textVersion: number; lines: VisualLine[] } | null = null;
 
 	public onSubmit?: (text: string) => void;
@@ -243,12 +243,14 @@ export class Editor implements Component, Focusable {
 
 	private getLayoutLines(width: number): LayoutLine[] {
 		const cached = this.layoutCache;
-		if (cached && cached.width === width && cached.textVersion === this.textVersion) {
+		if (cached && cached.width === width && cached.textVersion === this.textVersion
+			&& cached.cursorLine === this.state.cursorLine && cached.cursorCol === this.state.cursorCol) {
 			return cached.lines;
 		}
 
 		const lines = this.layoutText(width);
-		this.layoutCache = { width, textVersion: this.textVersion, lines };
+		this.layoutCache = { width, textVersion: this.textVersion, lines,
+			cursorLine: this.state.cursorLine, cursorCol: this.state.cursorCol };
 		return lines;
 	}