diff --git a/__tests__/unit/lib/collapseWrappedUserLines.test.ts b/__tests__/unit/lib/collapseWrappedUserLines.test.ts
index 8f1ea142..e30ff1c3 100644
--- a/__tests__/unit/lib/collapseWrappedUserLines.test.ts
+++ b/__tests__/unit/lib/collapseWrappedUserLines.test.ts
@@ -52,6 +52,31 @@ describe('collapseWrappedUserLines', () => {
     expect(collapseWrappedUserLines(lines, texts)).toEqual(lines)
   })
 
+  it('collapses when the CLI indents the wrapped continuation row', () => {
+    const head =
+      'In a new worktree change the Browse component files system Explorer to show not only directories, but files too, but'
+    const tail = "the files shouldn't be selectable/clickable, only for view."
+    const lines = [`❯ ${head}`, `  ${tail}`]
+    const texts = new Set([`${head} ${tail}`])
+    expect(collapseWrappedUserLines(lines, texts)).toEqual([`❯ ${head} ${tail}`])
+  })
+
+  it('collapses when the prompt row itself carries left padding', () => {
+    const lines = ['   ❯ this is a long prompt that got', 'wrapped across rows']
+    const texts = new Set(['this is a long prompt that got wrapped across rows'])
+    expect(collapseWrappedUserLines(lines, texts)).toEqual([
+      '❯ this is a long prompt that got wrapped across rows',
+    ])
+  })
+
+  it('restores the ground-truth text verbatim when the prompt had newlines', () => {
+    const lines = ['❯ first paragraph', 'second paragraph']
+    const texts = new Set(['first paragraph\nsecond paragraph'])
+    expect(collapseWrappedUserLines(lines, texts)).toEqual([
+      '❯ first paragraph\nsecond paragraph',
+    ])
+  })
+
   it('collapses multiple separate wrapped prompts in the same line array', () => {
     const lines = [
       '❯ first prompt part',
diff --git a/lib/collapseWrappedUserLines.ts b/lib/collapseWrappedUserLines.ts
index c2eeeb24..d3b9841e 100644
--- a/lib/collapseWrappedUserLines.ts
+++ b/lib/collapseWrappedUserLines.ts
@@ -1,14 +1,23 @@
 const USER_PREFIX_RE = /^[❯›>]\s(.*)$/
 const MAX_LOOKAHEAD = 20
 
+// The PTY does not round-trip whitespace: Claude Code indents wrapped
+// continuation rows, and a prompt typed with newlines is echoed as separate
+// rows. Compare on collapsed whitespace so neither turns an otherwise exact
+// match into a miss.
+function normalize(text: string): string {
+  return text.replace(/\s+/g, ' ').trim()
+}
+
 /**
  * Collapses runs of PTY rows that together reconstruct one echoed user
  * prompt (wrapped by Claude Code's own CLI at its terminal width) into a
  * single row holding the ground-truth text from `userMessageTexts`.
  *
- * Matching is exact-string only against `userMessageTexts` — no punctuation
- * or sentence-boundary heuristics, since terminal output also contains
- * prose, trees, and tables that a heuristic could misjoin.
+ * Matching is exact-string only against `userMessageTexts` (modulo
+ * whitespace) — no punctuation or sentence-boundary heuristics, since
+ * terminal output also contains prose, trees, and tables that a heuristic
+ * could misjoin.
  */
 export function collapseWrappedUserLines(
   lines: string[],
@@ -16,11 +25,16 @@ export function collapseWrappedUserLines(
 ): string[] {
   if (!userMessageTexts || userMessageTexts.size === 0) return lines
 
+  const groundTruthByNormalized = new Map<string, string>()
+  for (const text of userMessageTexts) {
+    groundTruthByNormalized.set(normalize(text), text)
+  }
+
   const result: string[] = []
   let i = 0
 
   while (i < lines.length) {
-    const match = lines[i].match(USER_PREFIX_RE)
+    const match = lines[i].trim().match(USER_PREFIX_RE)
     if (!match) {
       result.push(lines[i])
       i += 1
@@ -28,23 +42,25 @@ export function collapseWrappedUserLines(
     }
 
     let accumulated = match[1]
+    let matched: string | undefined
     let matchedEnd = -1
     const limit = Math.min(lines.length, i + 1 + MAX_LOOKAHEAD)
     for (let j = i; j < limit; j += 1) {
       if (j > i) accumulated += ' ' + lines[j]
-      if (userMessageTexts.has(accumulated.trim())) {
+      matched = groundTruthByNormalized.get(normalize(accumulated))
+      if (matched !== undefined) {
         matchedEnd = j
         break
       }
     }
 
-    if (matchedEnd === -1) {
+    if (matchedEnd === -1 || matched === undefined) {
       result.push(lines[i])
       i += 1
       continue
     }
 
-    result.push(`❯ ${accumulated.trim()}`)
+    result.push(`❯ ${matched}`)
     i = matchedEnd + 1
   }