diff --git a/crates/forge_main/src/zsh/plugin.rs b/crates/forge_main/src/zsh/plugin.rs
index c91ee70a9a..0350f9ad07 100644
--- a/crates/forge_main/src/zsh/plugin.rs
+++ b/crates/forge_main/src/zsh/plugin.rs
@@ -417,11 +417,21 @@ mod tests {
         use pretty_assertions::assert_eq;
 
         let fixture = generate_zsh_plugin().unwrap();
-        let actual = fixture.contains(
-            "    _forge_osc133_emit \"B\"\n    _forge_osc133_emit \"C\"\n    case \"$user_action\" in",
-        ) && fixture.contains(
-            "    local action_status=$?\n    _forge_osc133_emit \"D;$action_status\"\n    _forge_osc133_emit \"A\"\n    _forge_reset",
-        );
+
+        // Verify OSC 133 B and C markers are emitted before the action dispatch
+        let actual = fixture.contains("    _forge_osc133_emit \"B\"\n    _forge_osc133_emit \"C\"")
+            // The buffer is redisplayed with cursor at end so user input stays visible
+            && fixture.contains("CURSOR=${#BUFFER}\n    zle redisplay")
+            // The case dispatch follows the buffer redisplay
+            && fixture.contains("    case \"$user_action\" in")
+            // _forge_reset pads with newlines before clearing to prevent ZLE from clearing
+            // conversation output lines (see helpers.zsh:139-157)
+            && fixture.contains("for ((_i=1; _i<pad; _i++)); do print; done\n")
+            && fixture.contains("BUFFER=\"\"\n  CURSOR=0")
+            // D and A markers follow the action, with _forge_reset at the end
+            && fixture.contains(
+                "    local action_status=$?\n    _forge_osc133_emit \"D;$action_status\"\n    _forge_osc133_emit \"A\"\n    _forge_reset",
+            );
         let expected = true;
         assert_eq!(actual, expected);
     }
diff --git a/shell-plugin/lib/dispatcher.zsh b/shell-plugin/lib/dispatcher.zsh
index c5f13db0e0..0be98eb808 100644
--- a/shell-plugin/lib/dispatcher.zsh
+++ b/shell-plugin/lib/dispatcher.zsh
@@ -118,9 +118,6 @@ function forge-accept-line() {
     # Add the original command to history before transformation
     print -s -- "$original_buffer"
     
-    # CRITICAL: Move cursor to end so output doesn't overwrite
-    # Don't clear BUFFER yet - let _forge_reset do that after action completes
-    # This keeps buffer state consistent if Ctrl+C is pressed
     CURSOR=${#BUFFER}
     zle redisplay
     
diff --git a/shell-plugin/lib/helpers.zsh b/shell-plugin/lib/helpers.zsh
index 2f038381c6..32d2e3f092 100644
--- a/shell-plugin/lib/helpers.zsh
+++ b/shell-plugin/lib/helpers.zsh
@@ -137,6 +137,17 @@ function _forge_select_model_pair_global() {
 }
 
 function _forge_reset() {
+  # Print newlines equal to the current buffer display line count so that
+  # ZLE's zrefresh() clears these padding lines instead of conversation
+  # output. When BUFFER spans multiple display lines (newlines or terminal
+  # wrap), ZLE tracks the multi-line state internally (olnct). On
+  # reset-prompt, zrefresh() compares olnct (old multi-line count) against
+  # nlnct (new count after clearing) and clears the delta lines. By
+  # printing padding here, the cleared lines are blank ones we inserted
+  # rather than the forge conversation output that precedes them.
+  local pad="${BUFFERLINES:-1}" _i
+  for ((_i=1; _i<pad; _i++)); do print; done
+
   # Clear buffer and reset cursor position
   BUFFER=""
   CURSOR=0