diff --git a/src/agentex/lib/cli/handlers/run_handlers.py b/src/agentex/lib/cli/handlers/run_handlers.py
index 18ee84e93..40d509462 100644
--- a/src/agentex/lib/cli/handlers/run_handlers.py
+++ b/src/agentex/lib/cli/handlers/run_handlers.py
@@ -5,6 +5,7 @@
 import asyncio
 from pathlib import Path
 
+from rich.text import Text
 from rich.panel import Panel
 from rich.console import Console
 
@@ -291,7 +292,7 @@ async def stream_process_output(process: asyncio.subprocess.Process, prefix: str
                 continue
 
             if decoded_line:  # Only print non-empty lines
-                console.print(f"[dim]{prefix}:[/dim] {decoded_line}")
+                console.print(Text.assemble((f"{prefix}:", "dim"), " ", decoded_line))
     except Exception as e:
         # The escalation path, including for the re-raise above. Anything reaching
         # here ends the loop, so the child is now at risk of blocking on a full pipe.
diff --git a/tests/lib/cli/test_run_handlers_streaming.py b/tests/lib/cli/test_run_handlers_streaming.py
index 8f0ab13b5..5346a2481 100644
--- a/tests/lib/cli/test_run_handlers_streaming.py
+++ b/tests/lib/cli/test_run_handlers_streaming.py
@@ -8,6 +8,7 @@
 
 from __future__ import annotations
 
+import re
 import sys
 import asyncio
 from typing import Any
@@ -40,6 +41,22 @@
 print("done")
 """
 
+MARKUP_LINES = (
+    "[INST] hi [/INST]",
+    "loaded [/etc/hosts]",
+    "[info] starting",
+    "deps: [pkg==1.0]",
+    "[bold]x[/bold]",
+)
+
+MARKUP_CHILD_SCRIPT = """
+for line in {lines!r}:
+    print(line)
+for i in range(10000):
+    print("after", i, "y" * 60)
+print("done")
+"""
+
 
 async def _drain(limit: int, oversized: int) -> int | None:
     """Run the child under stream_process_output. None means it never exited."""
@@ -61,6 +78,26 @@ async def _drain(limit: int, oversized: int) -> int | None:
     return process.returncode
 
 
+async def _drain_markup_lines(limit: int) -> int | None:
+    """Run a child whose output looks like rich markup, then floods the pipe."""
+    process = await asyncio.create_subprocess_exec(
+        sys.executable,
+        "-c",
+        MARKUP_CHILD_SCRIPT.format(lines=MARKUP_LINES),
+        stdout=asyncio.subprocess.PIPE,
+        stderr=asyncio.subprocess.STDOUT,
+        limit=limit,
+    )
+    streamer = asyncio.create_task(stream_process_output(process, "TEST"))
+    try:
+        await asyncio.wait_for(asyncio.gather(streamer, process.wait()), timeout=60)
+    except TimeoutError:
+        process.kill()
+        await process.wait()
+        return None
+    return process.returncode
+
+
 async def test_oversized_line_is_skipped_without_stalling_the_child(
     capsys: pytest.CaptureFixture[str],
 ) -> None:
@@ -98,6 +135,35 @@ async def test_large_line_within_the_limit_is_streamed_in_full(
     assert out.count(MARKER) == oversized, "the large line was dropped rather than streamed"
 
 
+async def test_markup_like_output_does_not_stop_the_reader(
+    capsys: pytest.CaptureFixture[str],
+) -> None:
+    """An unmatched closing tag in the child's output must not end the loop.
+
+    Agents dump prompts and paths, so "[INST] hi [/INST]" is ordinary output.
+    Parsed as markup it raises MarkupError, which reaches the outer handler and
+    leaves nothing draining the pipe. The child reaching exit is the assertion,
+    so the child writes far more than the buffers behind a 64 KiB limit hold.
+    """
+    returncode = await _drain_markup_lines(limit=64 * 1024)
+    out = capsys.readouterr().out
+
+    assert returncode == 0, "child did not exit: the reader stopped draining its pipe"
+    assert "done" in out
+
+
+async def test_markup_like_output_is_printed_verbatim(
+    capsys: pytest.CaptureFixture[str],
+) -> None:
+    """Bracketed words are the child's content, not styling, so none are eaten."""
+    returncode = await _drain_markup_lines(limit=SUBPROCESS_STREAM_LIMIT)
+    out = re.sub(r"\x1b\[[0-9;]*m", "", capsys.readouterr().out)
+
+    assert returncode == 0
+    for line in MARKUP_LINES:
+        assert f"TEST: {line}" in out, f"rich consumed part of {line!r}"
+
+
 class _AlwaysFailingReader:
     """A reader whose readline() raises without consuming anything.