diff --git a/.devcontainer.json b/.devcontainer.json
index 4d87578..59fd391 100644
--- a/.devcontainer.json
+++ b/.devcontainer.json
@@ -1,3 +1,3 @@
 {
-    "image": "mcr.microsoft.com/devcontainers/javascript-node"
+    "image": "devpit:latest"
 }
\ No newline at end of file
diff --git a/src/terminalService.js b/src/terminalService.js
index bd53076..e33fa84 100644
--- a/src/terminalService.js
+++ b/src/terminalService.js
@@ -35,19 +35,24 @@ class TerminalService extends EventEmitter {
         });
 
         this.ptyProcess.onData((data) => {
-            // Normalize line endings
-            const normalized = String(data).replace(/\r\n/g, '\n').replace(/\r/g, '\n');
-            const parts = normalized.split('\n');
-
-            // First part joins the existing partial
-            if (parts.length > 0) {
-                this.partial += parts[0];
-            }
-
-            // For each subsequent part before the last, we have completed lines
-            for (let i = 1; i < parts.length; i += 1) {
-                this.lines.push(this.partial);
-                this.partial = parts[i];
+            const str = String(data);
+            for (let i = 0; i < str.length; i += 1) {
+                const ch = str[i];
+                if (ch === '\\n') {
+                    // Line feed completes the current line
+                    this.lines.push(this.partial);
+                    this.partial = '';
+                } else if (ch === '\\r') {
+                    // Carriage return: move to start of line; start overwriting
+                    this.partial = '';
+                } else if (ch === '\\b' || ch === '\\x7f') {
+                    // Backspace or DEL: remove last char if present
+                    if (this.partial.length > 0) {
+                        this.partial = this.partial.slice(0, -1);
+                    }
+                } else {
+                    this.partial += ch;
+                }
             }
 
             // Enforce max lines buffer
diff --git a/src/ui/InkApp.jsx b/src/ui/InkApp.jsx
index 44c4c24..e7664ed 100644
--- a/src/ui/InkApp.jsx
+++ b/src/ui/InkApp.jsx
@@ -4,6 +4,26 @@ import TextInput from 'ink-text-input';
 import terminalService from '../terminalService.js';
 
 class Pane extends React.Component {
+    constructor(props) {
+        super(props);
+        this.state = {
+            cursorVisible: true,
+        };
+        this._cursorTimer = null;
+    }
+    componentDidMount() {
+        if (this.props.showCursor) {
+            this._cursorTimer = setInterval(() => {
+                this.setState((s) => ({ cursorVisible: !s.cursorVisible }));
+            }, typeof this.props.cursorBlinkMs === 'number' && this.props.cursorBlinkMs > 0 ? this.props.cursorBlinkMs : 500);
+        }
+    }
+    componentWillUnmount() {
+        if (this._cursorTimer) {
+            clearInterval(this._cursorTimer);
+            this._cursorTimer = null;
+        }
+    }
     // Strip ANSI escape sequences so width measurement/truncation is accurate
     stripAnsi(input) {
         if (input == null) return '';
@@ -35,6 +55,26 @@ class Pane extends React.Component {
         }
         return out;
     }
+    // Apply a blinking cursor to the given line according to width constraints
+    withCursor(line, maxWidth) {
+        const cursorChar = typeof this.props.cursorChar === 'string' && this.props.cursorChar.length > 0 ? this.props.cursorChar[0] : '█';
+        const visible = !!this.state.cursorVisible;
+        if (!visible) {
+            return line;
+        }
+        if (typeof maxWidth === 'number' && maxWidth > 0) {
+            if (line.length < maxWidth) {
+                return `${line}${cursorChar}`;
+            }
+            if (line.length === maxWidth) {
+                // Replace last char to avoid overflow
+                return `${line.slice(0, maxWidth - 1)}${cursorChar}`;
+            }
+            // If somehow longer, just ensure width
+            return `${line.slice(0, maxWidth - 1)}${cursorChar}`;
+        }
+        return `${line}${cursorChar}`;
+    }
     render() {
         const { title, lines, maxWidth } = this.props;
         return (
@@ -42,20 +82,17 @@ class Pane extends React.Component {
                 <Text color="cyan">{title}</Text>
                 <Box flexDirection="column" width="100%" flexShrink={1} minWidth={0}>
                     {(lines && lines.length > 0)
-                        ? lines.map((line, index) => (
-                            <Text key={index}>{
-                                (() => {
-                                    const clean = this.stripAnsi(line);
-                                    const width = typeof maxWidth === 'number' && maxWidth > 0 ? maxWidth : undefined;
-                                    // Expand tabs before slicing to visual width
-                                    const expanded = this.expandTabs(clean, 8, width);
-                                    if (width && expanded.length > width) {
-                                        return expanded.slice(0, width);
-                                    }
-                                    return expanded;
-                                })()
-                            }</Text>
-                        ))
+                        ? lines.map((line, index) => {
+                            const isLast = index === lines.length - 1;
+                            const width = typeof maxWidth === 'number' && maxWidth > 0 ? maxWidth : undefined;
+                            const clean = this.stripAnsi(line);
+                            const expanded = this.expandTabs(clean, 8, width);
+                            const baseLine = (width && expanded.length > width) ? expanded.slice(0, width) : expanded;
+                            const finalLine = (this.props.showCursor && isLast) ? this.withCursor(baseLine, width) : baseLine;
+                            return (
+                                <Text key={index}>{finalLine}</Text>
+                            );
+                        })
                         : <Text dimColor>—</Text>
                     }
                 </Box>
@@ -201,7 +238,7 @@ export default class InkApp extends React.Component {
                         <Pane title="Chain of Thought" lines={chainOfThoughtView} maxWidth={paneContentWidth} />
                     </Box>
                     <Box flexGrow={1} flexDirection="column" minWidth={0}>
-                        <Pane title="Terminal" lines={terminalView} maxWidth={paneContentWidth} />
+                        <Pane title="Terminal" lines={terminalView} maxWidth={paneContentWidth} showCursor cursorBlinkMs={600} />
                         <Pane title="Logging" lines={logsView} maxWidth={paneContentWidth} />
                     </Box>
                 </Box>