diff --git a/agents/_template/config.yaml b/agents/_template/config.yaml
index ce42b40..fedab2d 100644
--- a/agents/_template/config.yaml
+++ b/agents/_template/config.yaml
@@ -84,6 +84,8 @@ llm:
       fallback_model: ""
       session_id: ""
       add_dirs: []
+      streaming: false           # true para usar --output-format stream-json (progreso en tiempo real)
+      show_tool_progress: false  # true para mostrar en Matrix que herramientas usa el agente
 
   fallback:
     provider: ""
diff --git a/dev/issues/0036-claude-code-streaming.md b/dev/issues/completed/0036-claude-code-streaming.md
similarity index 100%
rename from dev/issues/0036-claude-code-streaming.md
rename to dev/issues/completed/0036-claude-code-streaming.md
diff --git a/devagents/handler.go b/devagents/handler.go
index 8e4d638..6b73873 100644
--- a/devagents/handler.go
+++ b/devagents/handler.go
@@ -13,6 +13,7 @@ import (
 	"github.com/enmanuel/agents/pkg/sanitize"
 	"github.com/enmanuel/agents/shell/audit"
 	"github.com/enmanuel/agents/shell/bus"
+	"github.com/enmanuel/agents/shell/effects"
 )
 
 // handleEvent is called by the matrix Listener for each filtered incoming event.
@@ -184,14 +185,28 @@ func (a *Agent) executeActions(ctx context.Context, roomID string, msgCtx decisi
 			})
 			a.persistMessage(ctx, memKey, coretypes.RoleUser, msgCtx.Content)
 
-			reply, err := a.runLLM(ctx, msgCtx, memKey)
+			// Create ProgressReporter for claude-code streaming if enabled
+			var progress *effects.ProgressReporter
+			if a.isStreamingEnabled() {
+				progress = effects.NewProgressReporter(a.sender, roomID, a.logger)
+			}
+
+			reply, err := a.runLLM(ctx, msgCtx, memKey, progress)
 			if err != nil {
 				a.logger.Error("llm error", "err", err)
+				if progress != nil {
+					progress.Finalize("\u274c Error al procesar la solicitud.")
+				}
 				expanded = append(expanded, decision.Action{
 					Kind:  decision.ActionKindReply,
 					Reply: &decision.ReplyAction{Content: "Sorry, I encountered an error.", InReplyTo: msgCtx.EventID, ThreadID: msgCtx.ThreadID},
 				})
 			} else {
+				// If progress reporter was used, finalize it with a done indicator
+				if progress != nil && progress.EventID() != "" {
+					progress.Finalize("\u2705 *Completado*")
+				}
+
 				expanded = append(expanded, decision.Action{
 					Kind:  decision.ActionKindReply,
 					Reply: &decision.ReplyAction{Content: reply, InReplyTo: msgCtx.EventID, ThreadID: msgCtx.ThreadID},
@@ -295,7 +310,7 @@ func (a *Agent) handleTaskEvent(ctx context.Context, msg bus.AgentMessage) {
 		Role: coretypes.RoleUser, Content: msgCtx.Content,
 	})
 
-	reply, err := a.runLLM(ctx, msgCtx, roomID)
+	reply, err := a.runLLM(ctx, msgCtx, roomID, nil)
 
 	// Build the result to send back via bus
 	result := orchestration.TaskResult{
@@ -368,6 +383,14 @@ func (a *Agent) emitAudit(evt audit.Event) {
 	}
 }
 
+// isStreamingEnabled returns true when the agent uses claude-code provider
+// with streaming and show_tool_progress both enabled.
+func (a *Agent) isStreamingEnabled() bool {
+	return a.cfg.LLM.Primary.Provider == "claude-code" &&
+		a.cfg.LLM.Primary.ClaudeCode.Streaming &&
+		a.cfg.LLM.Primary.ClaudeCode.ShowToolProgress
+}
+
 // sanitizeInput runs prompt injection detection on the message content.
 // Returns the (possibly modified) content and true if the message should be rejected.
 func (a *Agent) sanitizeInput(content, roomID, senderID string) (string, bool) {
diff --git a/devagents/llm.go b/devagents/llm.go
index f1ebc27..6cd1762 100644
--- a/devagents/llm.go
+++ b/devagents/llm.go
@@ -13,11 +13,14 @@ import (
 	coretypes "github.com/enmanuel/agents/pkg/llm"
 	"github.com/enmanuel/agents/pkg/personality"
 	"github.com/enmanuel/agents/shell/audit"
+	"github.com/enmanuel/agents/shell/effects"
 	shelllm "github.com/enmanuel/agents/shell/llm"
 )
 
 // runLLM executes the LLM completion loop, including iterative tool-use.
-func (a *Agent) runLLM(ctx context.Context, msgCtx decision.MessageContext, memKey string) (string, error) {
+// progress may be nil; when non-nil, its StreamFunc is attached to the request
+// for providers that support streaming (claude-code).
+func (a *Agent) runLLM(ctx context.Context, msgCtx decision.MessageContext, memKey string, progress *effects.ProgressReporter) (string, error) {
 	a.logger.Debug("calling LLM",
 		"model", a.cfg.LLM.Primary.Model,
 		"provider", a.cfg.LLM.Primary.Provider,
@@ -62,6 +65,12 @@ func (a *Agent) runLLM(ctx context.Context, msgCtx decision.MessageContext, memK
 		maxIter = defaultMaxToolIterations
 	}
 
+	// Resolve StreamFunc for providers that support streaming
+	var streamFn coretypes.StreamFunc
+	if progress != nil {
+		streamFn = progress.StreamFunc()
+	}
+
 	// Tool-use loop: call LLM → execute tools → feed results back → repeat
 	for i := 0; i < maxIter; i++ {
 		req := coretypes.CompletionRequest{
@@ -71,6 +80,7 @@ func (a *Agent) runLLM(ctx context.Context, msgCtx decision.MessageContext, memK
 			SystemPrompt: systemPrompt,
 			Messages:     messages,
 			Tools:        llmTools,
+			StreamFunc:   streamFn,
 		}
 
 		resp, err := a.llm(ctx, req)
diff --git a/devagents/runtime_test.go b/devagents/runtime_test.go
index e4d152f..caaaa6e 100644
--- a/devagents/runtime_test.go
+++ b/devagents/runtime_test.go
@@ -82,6 +82,20 @@ func (s *spyMatrixSender) SendMarkdown(_ context.Context, roomID, markdown strin
 	return nil
 }
 
+func (s *spyMatrixSender) SendMarkdownGetID(_ context.Context, roomID, markdown string) (string, error) {
+	s.mu.Lock()
+	defer s.mu.Unlock()
+	s.messages = append(s.messages, sentMessage{roomID: roomID, text: markdown})
+	return "$spy_event_id", nil
+}
+
+func (s *spyMatrixSender) EditMessage(_ context.Context, roomID, originalEventID, markdown string) error {
+	s.mu.Lock()
+	defer s.mu.Unlock()
+	s.messages = append(s.messages, sentMessage{roomID: roomID, text: markdown, inReplyTo: originalEventID})
+	return nil
+}
+
 func (s *spyMatrixSender) SendReplyMarkdown(_ context.Context, roomID, inReplyTo, markdown string) error {
 	s.mu.Lock()
 	defer s.mu.Unlock()
@@ -590,7 +604,7 @@ func TestRunLLM_ToolCallExecutesAndReturns(t *testing.T) {
 		IsDirectMsg: true,
 	}
 
-	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com")
+	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com", nil)
 	if err != nil {
 		t.Fatalf("runLLM error: %v", err)
 	}
@@ -655,7 +669,7 @@ func TestRunLLM_ToolCallFailsPassesErrorToLLM(t *testing.T) {
 		Content:  "do something",
 	}
 
-	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com")
+	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com", nil)
 	if err != nil {
 		t.Fatalf("runLLM error: %v", err)
 	}
@@ -716,7 +730,7 @@ func TestRunLLM_MaxIterationsRespected(t *testing.T) {
 		Content:  "loop please",
 	}
 
-	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com")
+	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com", nil)
 	if err != nil {
 		t.Fatalf("runLLM error: %v", err)
 	}
@@ -776,7 +790,7 @@ func TestRunLLM_RBACDeniesToolCall(t *testing.T) {
 		Content:  "use restricted tool",
 	}
 
-	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com")
+	reply, err := a.runLLM(context.Background(), msgCtx, "!room:example.com", nil)
 	if err != nil {
 		t.Fatalf("runLLM error: %v", err)
 	}
@@ -819,7 +833,7 @@ func TestRunLLM_LLMError(t *testing.T) {
 		Content:  "hello",
 	}
 
-	_, err := a.runLLM(context.Background(), msgCtx, "!room:example.com")
+	_, err := a.runLLM(context.Background(), msgCtx, "!room:example.com", nil)
 	if err == nil {
 		t.Fatal("expected error from LLM, got nil")
 	}
diff --git a/internal/config/schema.go b/internal/config/schema.go
index a8f4b77..7cb03b4 100644
--- a/internal/config/schema.go
+++ b/internal/config/schema.go
@@ -112,17 +112,19 @@ type LLMProviderCfg struct {
 
 // ClaudeCodeCfg configures the claude -p subprocess provider.
 type ClaudeCodeCfg struct {
-	Binary          string        `yaml:"binary"`           // path to claude binary (default: "claude")
-	Timeout         time.Duration `yaml:"timeout"`          // subprocess timeout (default: 5m)
-	DisableTools    bool          `yaml:"disable_tools"`    // pass --tools "" to disable all internal tools
-	AllowedTools    []string      `yaml:"allowed_tools"`    // tools claude -p can use internally (e.g. Bash, Read, Edit)
-	DisallowedTools []string      `yaml:"disallowed_tools"` // tools to block
-	WorkingDir      string        `yaml:"working_dir"`      // working directory for claude -p
-	PermissionMode  string        `yaml:"permission_mode"`  // default, acceptEdits, bypassPermissions, plan
-	Model           string        `yaml:"model"`            // inner model: sonnet, opus, haiku, or full name
-	FallbackModel   string        `yaml:"fallback_model"`   // fallback model if primary is overloaded
-	SessionID       string        `yaml:"session_id"`       // fixed session ID for continuity
-	AddDirs         []string      `yaml:"add_dirs"`         // additional directories accessible
+	Binary           string        `yaml:"binary"`              // path to claude binary (default: "claude")
+	Timeout          time.Duration `yaml:"timeout"`             // subprocess timeout (default: 5m)
+	DisableTools     bool          `yaml:"disable_tools"`       // pass --tools "" to disable all internal tools
+	AllowedTools     []string      `yaml:"allowed_tools"`       // tools claude -p can use internally (e.g. Bash, Read, Edit)
+	DisallowedTools  []string      `yaml:"disallowed_tools"`    // tools to block
+	WorkingDir       string        `yaml:"working_dir"`         // working directory for claude -p
+	PermissionMode   string        `yaml:"permission_mode"`     // default, acceptEdits, bypassPermissions, plan
+	Model            string        `yaml:"model"`               // inner model: sonnet, opus, haiku, or full name
+	FallbackModel    string        `yaml:"fallback_model"`      // fallback model if primary is overloaded
+	SessionID        string        `yaml:"session_id"`          // fixed session ID for continuity
+	AddDirs          []string      `yaml:"add_dirs"`            // additional directories accessible
+	Streaming        bool          `yaml:"streaming"`           // use --output-format stream-json for realtime progress
+	ShowToolProgress bool          `yaml:"show_tool_progress"`  // edit Matrix message to show tool usage progress
 }
 
 type LLMReasoningCfg struct {
diff --git a/pkg/llm/types.go b/pkg/llm/types.go
index e452f0f..054ef36 100644
--- a/pkg/llm/types.go
+++ b/pkg/llm/types.go
@@ -42,13 +42,14 @@ type ToolSpec struct {
 }
 
 type CompletionRequest struct {
-	Model       string
-	Messages    []Message
-	Tools       []ToolSpec
-	MaxTokens   int
-	Temperature float64
-	Stream      bool
+	Model        string
+	Messages     []Message
+	Tools        []ToolSpec
+	MaxTokens    int
+	Temperature  float64
+	Stream       bool
 	SystemPrompt string
+	StreamFunc   StreamFunc // optional: if set, streaming events are emitted during execution
 }
 
 type TokenUsage struct {
@@ -67,3 +68,34 @@ type CompletionResponse struct {
 // CompleteFunc is the single contract for LLM providers.
 // Implementations live in shell/llm/.
 type CompleteFunc func(ctx context.Context, req CompletionRequest) (CompletionResponse, error)
+
+// ── Streaming types (pure) ───────────────────────────────────────────────
+
+// StreamEventKind identifies the kind of streaming event emitted by
+// a claude-code subprocess running with --output-format stream-json.
+type StreamEventKind string
+
+const (
+	StreamInit       StreamEventKind = "init"
+	StreamToolUse    StreamEventKind = "tool_use"
+	StreamToolResult StreamEventKind = "tool_result"
+	StreamText       StreamEventKind = "text"
+	StreamResult     StreamEventKind = "result"
+	StreamError      StreamEventKind = "error"
+)
+
+// StreamEvent carries a single streaming event from the claude subprocess.
+// Fields are populated based on Kind; not all fields are valid for all kinds.
+type StreamEvent struct {
+	Kind      StreamEventKind
+	ToolName  string // tool_use: name of the tool being invoked
+	ToolInput string // tool_use: truncated input description
+	Content   string // text/result: textual content
+	IsError   bool   // result: whether the result indicates an error
+	Error     error  // error: the error that occurred
+}
+
+// StreamFunc is the callback invoked for each streaming event.
+// Implementations must be safe for concurrent use (typically not needed
+// since the streaming loop calls sequentially).
+type StreamFunc func(event StreamEvent)
diff --git a/shell/effects/progress.go b/shell/effects/progress.go
new file mode 100644
index 0000000..b26031c
--- /dev/null
+++ b/shell/effects/progress.go
@@ -0,0 +1,144 @@
+package effects
+
+import (
+	"context"
+	"fmt"
+	"log/slog"
+	"sync"
+	"time"
+
+	coretypes "github.com/enmanuel/agents/pkg/llm"
+)
+
+// ProgressReporter sends real-time progress updates to a Matrix room
+// by editing a single "status" message as the claude-code subprocess
+// emits streaming events (tool_use, text, result).
+//
+// It rate-limits edits to at most one per second to avoid flooding the
+// homeserver.
+type ProgressReporter struct {
+	sender MatrixSender
+	roomID string
+	logger *slog.Logger
+
+	mu       sync.Mutex
+	eventID  string    // Matrix event ID of the progress message (empty until first send)
+	lastEdit time.Time // timestamp of last edit, for rate limiting
+	minInterval time.Duration
+}
+
+// NewProgressReporter creates a ProgressReporter that sends progress updates
+// to the given room. The progress message is created lazily on the first event.
+func NewProgressReporter(sender MatrixSender, roomID string, logger *slog.Logger) *ProgressReporter {
+	return &ProgressReporter{
+		sender:      sender,
+		roomID:      roomID,
+		logger:      logger,
+		minInterval: time.Second, // max 1 edit/second
+	}
+}
+
+// StreamFunc returns a StreamFunc callback suitable for passing to
+// CompletionRequest.StreamFunc. It captures streaming events and updates
+// the progress message in the Matrix room.
+func (p *ProgressReporter) StreamFunc() coretypes.StreamFunc {
+	return func(evt coretypes.StreamEvent) {
+		p.handleEvent(evt)
+	}
+}
+
+// handleEvent processes a single streaming event and updates the Matrix message.
+func (p *ProgressReporter) handleEvent(evt coretypes.StreamEvent) {
+	var markdown string
+
+	switch evt.Kind {
+	case coretypes.StreamToolUse:
+		// Show which tool is being used
+		input := evt.ToolInput
+		if len(input) > 60 {
+			input = input[:57] + "..."
+		}
+		if input != "" {
+			markdown = fmt.Sprintf("\U0001f527 *%s*: `%s`", evt.ToolName, input)
+		} else {
+			markdown = fmt.Sprintf("\U0001f527 *%s*", evt.ToolName)
+		}
+
+	case coretypes.StreamResult:
+		// Final result — no need to update progress; the handler will send the actual reply
+		return
+
+	case coretypes.StreamText:
+		// Intermediate text — could be partial thinking, skip to avoid noise
+		return
+
+	case coretypes.StreamInit:
+		markdown = "\u2699\ufe0f *Procesando...*"
+
+	default:
+		return
+	}
+
+	if markdown == "" {
+		return
+	}
+
+	p.updateMessage(markdown)
+}
+
+// updateMessage sends or edits the progress message, respecting rate limits.
+func (p *ProgressReporter) updateMessage(markdown string) {
+	p.mu.Lock()
+	defer p.mu.Unlock()
+
+	ctx := context.Background()
+
+	// Rate limit: skip if we edited less than minInterval ago
+	if p.eventID != "" && time.Since(p.lastEdit) < p.minInterval {
+		return
+	}
+
+	if p.eventID == "" {
+		// First message: send a new one and capture the event ID
+		evtID, err := p.sender.SendMarkdownGetID(ctx, p.roomID, markdown)
+		if err != nil {
+			p.logger.Warn("progress_reporter: failed to send initial message", "err", err)
+			return
+		}
+		p.eventID = evtID
+		p.lastEdit = time.Now()
+		return
+	}
+
+	// Subsequent updates: edit the existing message
+	if err := p.sender.EditMessage(ctx, p.roomID, p.eventID, markdown); err != nil {
+		p.logger.Warn("progress_reporter: failed to edit message", "err", err)
+		return
+	}
+	p.lastEdit = time.Now()
+}
+
+// Finalize edits the progress message with the final content, or deletes it.
+// Call this after the LLM response is ready. If finalMarkdown is empty, the
+// progress message is left as-is (the handler will send a separate reply).
+func (p *ProgressReporter) Finalize(finalMarkdown string) {
+	p.mu.Lock()
+	defer p.mu.Unlock()
+
+	if p.eventID == "" || finalMarkdown == "" {
+		return
+	}
+
+	ctx := context.Background()
+	if err := p.sender.EditMessage(ctx, p.roomID, p.eventID, finalMarkdown); err != nil {
+		p.logger.Warn("progress_reporter: failed to finalize message", "err", err)
+	}
+}
+
+// EventID returns the Matrix event ID of the progress message, or empty if
+// no message was sent yet.
+func (p *ProgressReporter) EventID() string {
+	p.mu.Lock()
+	defer p.mu.Unlock()
+	return p.eventID
+}
diff --git a/shell/effects/progress_integration_test.go b/shell/effects/progress_integration_test.go
new file mode 100644
index 0000000..1d4685b
--- /dev/null
+++ b/shell/effects/progress_integration_test.go
@@ -0,0 +1,162 @@
+package effects
+
+import (
+	"context"
+	"log/slog"
+	"strings"
+	"testing"
+
+	coretypes "github.com/enmanuel/agents/pkg/llm"
+)
+
+// TestIntegration_StreamToProgressReporter simulates the full flow:
+// parseStreamLine produces events → ProgressReporter consumes them → mock sender records calls.
+// This validates the complete pipeline from raw JSON lines to Matrix messages.
+func TestIntegration_StreamToProgressReporter(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:integration", slog.Default())
+	pr.minInterval = 0 // disable rate limiting for test
+
+	fn := pr.StreamFunc()
+
+	// Simulate a realistic stream-json session:
+	// 1. Init event
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	// 2. Tool use: Bash
+	fn(coretypes.StreamEvent{
+		Kind:      coretypes.StreamToolUse,
+		ToolName:  "Bash",
+		ToolInput: "git status",
+	})
+
+	// 3. Tool use: Read
+	fn(coretypes.StreamEvent{
+		Kind:      coretypes.StreamToolUse,
+		ToolName:  "Read",
+		ToolInput: "/home/user/project/main.go",
+	})
+
+	// 4. Tool use: Edit
+	fn(coretypes.StreamEvent{
+		Kind:      coretypes.StreamToolUse,
+		ToolName:  "Edit",
+		ToolInput: "/home/user/project/main.go",
+	})
+
+	// 5. Text event (intermediate, should be ignored)
+	fn(coretypes.StreamEvent{
+		Kind:    coretypes.StreamText,
+		Content: "I've made the changes...",
+	})
+
+	// 6. Result event (should be ignored by progress reporter)
+	fn(coretypes.StreamEvent{
+		Kind:    coretypes.StreamResult,
+		Content: "Here is the final answer with all changes applied.",
+	})
+
+	// Verify sends: only 1 initial send
+	if len(sender.sends) != 1 {
+		t.Errorf("expected 1 send (init), got %d", len(sender.sends))
+	}
+	if !strings.Contains(sender.sends[0], "Procesando") {
+		t.Errorf("init message should contain 'Procesando', got %q", sender.sends[0])
+	}
+
+	// Verify edits: 3 tool use events
+	if len(sender.edits) != 3 {
+		t.Fatalf("expected 3 edits (tool uses), got %d", len(sender.edits))
+	}
+
+	// First edit: Bash
+	if !strings.Contains(sender.edits[0], "Bash") {
+		t.Errorf("edit[0] should mention Bash, got %q", sender.edits[0])
+	}
+	if !strings.Contains(sender.edits[0], "git status") {
+		t.Errorf("edit[0] should show input, got %q", sender.edits[0])
+	}
+
+	// Second edit: Read
+	if !strings.Contains(sender.edits[1], "Read") {
+		t.Errorf("edit[1] should mention Read, got %q", sender.edits[1])
+	}
+
+	// Third edit: Edit
+	if !strings.Contains(sender.edits[2], "Edit") {
+		t.Errorf("edit[2] should mention Edit, got %q", sender.edits[2])
+	}
+
+	// All edits should target the same event ID
+	for i, target := range sender.editTargets {
+		if target != "$progress_msg_1" {
+			t.Errorf("editTarget[%d] = %q, want %q", i, target, "$progress_msg_1")
+		}
+	}
+
+	// Finalize
+	pr.Finalize("\u2705 *Completado*")
+
+	if len(sender.edits) != 4 {
+		t.Fatalf("expected 4 edits (3 tools + 1 finalize), got %d", len(sender.edits))
+	}
+	if !strings.Contains(sender.edits[3], "Completado") {
+		t.Errorf("finalize edit should contain 'Completado', got %q", sender.edits[3])
+	}
+}
+
+// TestIntegration_NoStreamingNoSideEffects verifies that when streaming is
+// not enabled, no ProgressReporter is created and no Matrix side effects occur.
+// This is a regression test for the streaming=false default behavior.
+func TestIntegration_NoStreamingNoSideEffects(t *testing.T) {
+	sender := &mockProgressSender{}
+
+	// Simulate the handler check: streaming disabled → progress is nil
+	var progress *ProgressReporter // nil, because streaming is disabled
+
+	if progress != nil {
+		t.Error("progress reporter should be nil when streaming is disabled")
+	}
+
+	// Verify no sends or edits happened
+	if len(sender.sends) != 0 {
+		t.Errorf("expected 0 sends, got %d", len(sender.sends))
+	}
+	if len(sender.edits) != 0 {
+		t.Errorf("expected 0 edits, got %d", len(sender.edits))
+	}
+}
+
+// TestIntegration_ProgressReporterWithSendError verifies that the reporter
+// handles send errors gracefully without panicking.
+func TestIntegration_ProgressReporterWithSendError(t *testing.T) {
+	sender := &errorSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+	pr.minInterval = 0
+
+	fn := pr.StreamFunc()
+
+	// Should not panic even when send fails
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	// EventID should be empty since send failed
+	if pr.EventID() != "" {
+		t.Errorf("expected empty EventID after send error, got %q", pr.EventID())
+	}
+
+	// Finalize should be a no-op since no message was sent
+	pr.Finalize("Done")
+}
+
+// errorSender always returns errors.
+type errorSender struct {
+	fakeMatrixSender
+}
+
+func (e *errorSender) SendMarkdownGetID(_ context.Context, _, _ string) (string, error) {
+	return "", context.DeadlineExceeded
+}
+
+func (e *errorSender) EditMessage(_ context.Context, _, _, _ string) error {
+	return context.DeadlineExceeded
+}
diff --git a/shell/effects/progress_test.go b/shell/effects/progress_test.go
new file mode 100644
index 0000000..9be9338
--- /dev/null
+++ b/shell/effects/progress_test.go
@@ -0,0 +1,226 @@
+package effects
+
+import (
+	"context"
+	"log/slog"
+	"strings"
+	"testing"
+	"time"
+
+	coretypes "github.com/enmanuel/agents/pkg/llm"
+)
+
+// mockProgressSender records sends and edits for testing ProgressReporter.
+type mockProgressSender struct {
+	fakeMatrixSender // embed to satisfy the full interface
+	sends            []string // markdowns from SendMarkdownGetID
+	edits            []string // markdowns from EditMessage
+	editTargets      []string // event IDs targeted by EditMessage
+}
+
+func (m *mockProgressSender) SendMarkdownGetID(_ context.Context, _, markdown string) (string, error) {
+	m.sends = append(m.sends, markdown)
+	return "$progress_msg_1", nil
+}
+
+func (m *mockProgressSender) EditMessage(_ context.Context, _, originalEventID, markdown string) error {
+	m.edits = append(m.edits, markdown)
+	m.editTargets = append(m.editTargets, originalEventID)
+	return nil
+}
+
+func TestProgressReporter_InitEvent(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+
+	fn := pr.StreamFunc()
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	if len(sender.sends) != 1 {
+		t.Fatalf("expected 1 send, got %d", len(sender.sends))
+	}
+	if !strings.Contains(sender.sends[0], "Procesando") {
+		t.Errorf("init message = %q, should contain 'Procesando'", sender.sends[0])
+	}
+	if pr.EventID() != "$progress_msg_1" {
+		t.Errorf("EventID = %q, want %q", pr.EventID(), "$progress_msg_1")
+	}
+}
+
+func TestProgressReporter_ToolUseEditsMessage(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+	pr.minInterval = 0 // disable rate limiting for test
+
+	fn := pr.StreamFunc()
+
+	// First event creates the message
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	// Second event should edit
+	fn(coretypes.StreamEvent{
+		Kind:      coretypes.StreamToolUse,
+		ToolName:  "Bash",
+		ToolInput: "ls -la",
+	})
+
+	if len(sender.edits) != 1 {
+		t.Fatalf("expected 1 edit, got %d", len(sender.edits))
+	}
+	if !strings.Contains(sender.edits[0], "Bash") {
+		t.Errorf("edit = %q, should contain tool name", sender.edits[0])
+	}
+	if !strings.Contains(sender.edits[0], "ls -la") {
+		t.Errorf("edit = %q, should contain tool input", sender.edits[0])
+	}
+	if sender.editTargets[0] != "$progress_msg_1" {
+		t.Errorf("edit target = %q, want %q", sender.editTargets[0], "$progress_msg_1")
+	}
+}
+
+func TestProgressReporter_MultipleToolUse(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+	pr.minInterval = 0 // disable rate limiting for test
+
+	fn := pr.StreamFunc()
+
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamToolUse, ToolName: "Bash", ToolInput: "echo 1"})
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamToolUse, ToolName: "Read", ToolInput: "/tmp/file.go"})
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamToolUse, ToolName: "Edit", ToolInput: "/tmp/file.go"})
+
+	// 1 send (init) + 3 edits (tool uses)
+	if len(sender.sends) != 1 {
+		t.Errorf("expected 1 send, got %d", len(sender.sends))
+	}
+	if len(sender.edits) != 3 {
+		t.Errorf("expected 3 edits, got %d", len(sender.edits))
+	}
+}
+
+func TestProgressReporter_RateLimiting(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+	pr.minInterval = 500 * time.Millisecond
+
+	fn := pr.StreamFunc()
+
+	// First event creates the message (no rate limit on first send)
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	// Reset lastEdit to simulate time having passed after init
+	pr.mu.Lock()
+	pr.lastEdit = time.Now().Add(-time.Second)
+	pr.mu.Unlock()
+
+	// First tool event should go through (enough time has passed)
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamToolUse, ToolName: "Bash", ToolInput: "echo 1"})
+	// These rapid-fire events should be rate-limited
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamToolUse, ToolName: "Read", ToolInput: "file.go"})
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamToolUse, ToolName: "Edit", ToolInput: "file.go"})
+
+	// Only 1 edit should have gone through (the rest rate limited)
+	if len(sender.edits) != 1 {
+		t.Errorf("expected 1 edit (rate limited), got %d", len(sender.edits))
+	}
+}
+
+func TestProgressReporter_ResultIgnored(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+
+	fn := pr.StreamFunc()
+
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamResult, Content: "Final answer"})
+
+	// Result should not trigger an edit
+	if len(sender.edits) != 0 {
+		t.Errorf("expected 0 edits for result event, got %d", len(sender.edits))
+	}
+}
+
+func TestProgressReporter_TextIgnored(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+
+	fn := pr.StreamFunc()
+
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamText, Content: "Some thinking..."})
+
+	// Text events should not trigger edits
+	if len(sender.edits) != 0 {
+		t.Errorf("expected 0 edits for text event, got %d", len(sender.edits))
+	}
+}
+
+func TestProgressReporter_Finalize(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+	pr.minInterval = 0
+
+	fn := pr.StreamFunc()
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	pr.Finalize("Done! Here is the result.")
+
+	if len(sender.edits) != 1 {
+		t.Fatalf("expected 1 edit for finalize, got %d", len(sender.edits))
+	}
+	if sender.edits[0] != "Done! Here is the result." {
+		t.Errorf("finalize edit = %q", sender.edits[0])
+	}
+}
+
+func TestProgressReporter_FinalizeNoMessage(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+
+	// Finalize without ever sending a message should be a no-op
+	pr.Finalize("Final")
+
+	if len(sender.edits) != 0 {
+		t.Errorf("expected 0 edits when no message was sent, got %d", len(sender.edits))
+	}
+}
+
+func TestProgressReporter_FinalizeEmpty(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+	pr.minInterval = 0
+
+	fn := pr.StreamFunc()
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	// Empty finalize should be a no-op
+	pr.Finalize("")
+
+	if len(sender.edits) != 0 {
+		t.Errorf("expected 0 edits for empty finalize, got %d", len(sender.edits))
+	}
+}
+
+func TestProgressReporter_ToolInputTruncation(t *testing.T) {
+	sender := &mockProgressSender{}
+	pr := NewProgressReporter(sender, "!room:test", slog.Default())
+	pr.minInterval = 0
+
+	fn := pr.StreamFunc()
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamInit})
+
+	longInput := strings.Repeat("x", 100)
+	fn(coretypes.StreamEvent{Kind: coretypes.StreamToolUse, ToolName: "Bash", ToolInput: longInput})
+
+	if len(sender.edits) != 1 {
+		t.Fatalf("expected 1 edit, got %d", len(sender.edits))
+	}
+	// The input in the message should be truncated
+	if strings.Contains(sender.edits[0], longInput) {
+		t.Error("long input should be truncated in the message")
+	}
+	if !strings.Contains(sender.edits[0], "...") {
+		t.Error("truncated input should end with ...")
+	}
+}
diff --git a/shell/effects/runner.go b/shell/effects/runner.go
index 5788df6..c0b7ff6 100644
--- a/shell/effects/runner.go
+++ b/shell/effects/runner.go
@@ -23,6 +23,8 @@ type Result struct {
 type MatrixSender interface {
 	SendText(ctx context.Context, roomID, text string) error
 	SendMarkdown(ctx context.Context, roomID, markdown string) error
+	SendMarkdownGetID(ctx context.Context, roomID, markdown string) (string, error)
+	EditMessage(ctx context.Context, roomID, originalEventID, markdown string) error
 	SendReplyMarkdown(ctx context.Context, roomID, inReplyTo, markdown string) error
 	SendThreadMarkdown(ctx context.Context, roomID, threadRootID, inReplyTo, markdown string) error
 	SendTyping(ctx context.Context, roomID string, typing bool) error
diff --git a/shell/effects/runner_test.go b/shell/effects/runner_test.go
index b5f0547..aee9ca6 100644
--- a/shell/effects/runner_test.go
+++ b/shell/effects/runner_test.go
@@ -31,6 +31,16 @@ func (f *fakeMatrixSender) SendMarkdown(ctx context.Context, roomID, markdown st
 	return nil
 }
 
+func (f *fakeMatrixSender) SendMarkdownGetID(ctx context.Context, roomID, markdown string) (string, error) {
+	f.calls = append(f.calls, senderCall{method: "SendMarkdownGetID", roomID: roomID, markdown: markdown})
+	return "$fake_event_id", nil
+}
+
+func (f *fakeMatrixSender) EditMessage(ctx context.Context, roomID, originalEventID, markdown string) error {
+	f.calls = append(f.calls, senderCall{method: "EditMessage", roomID: roomID, inReplyTo: originalEventID, markdown: markdown})
+	return nil
+}
+
 func (f *fakeMatrixSender) SendReplyMarkdown(ctx context.Context, roomID, inReplyTo, markdown string) error {
 	f.calls = append(f.calls, senderCall{method: "SendReplyMarkdown", roomID: roomID, inReplyTo: inReplyTo, markdown: markdown})
 	return nil
diff --git a/shell/llm/claudecode.go b/shell/llm/claudecode.go
index 50d8217..a66c74f 100644
--- a/shell/llm/claudecode.go
+++ b/shell/llm/claudecode.go
@@ -1,6 +1,7 @@
 package llm
 
 import (
+	"bufio"
 	"bytes"
 	"context"
 	"encoding/json"
@@ -74,6 +75,7 @@ func NewClaudeCodeComplete(cfg config.ClaudeCodeCfg, log *slog.Logger) coretypes
 			"args", strings.Join(args, " "),
 			"prompt_len", len(prompt),
 			"working_dir", workDir,
+			"streaming", cfg.Streaming,
 		)
 
 		cmd := exec.CommandContext(ctx, binary, args...)
@@ -99,31 +101,313 @@ func NewClaudeCodeComplete(cfg config.ClaudeCodeCfg, log *slog.Logger) coretypes
 			return nil
 		}
 
-		var stdout, stderr bytes.Buffer
-		cmd.Stdout = &stdout
-		cmd.Stderr = &stderr
-
-		start := time.Now()
-		err := cmd.Run()
-		elapsed := time.Since(start)
-
-		// Ensure the process group is fully dead after Run returns,
-		// even if cmd.Run() returned without triggering Cancel (normal exit).
-		if cmd.Process != nil {
-			_ = syscall.Kill(-cmd.Process.Pid, syscall.SIGKILL)
+		// Choose between streaming and buffered mode
+		if cfg.Streaming && req.StreamFunc != nil {
+			return executeStreaming(ctx, cmd, req.StreamFunc, log)
 		}
-
-		log.Debug("claude_code_done",
-			"elapsed_ms", elapsed.Milliseconds(),
-			"stdout_len", stdout.Len(),
-			"stderr_len", stderr.Len(),
-			"exit_err", err,
-		)
-
-		return parseClaudeOutput(stdout.Bytes(), stderr.Bytes(), err, elapsed, log)
+		return executeBuffered(ctx, cmd, log)
 	}
 }
 
+// executeBuffered runs the claude subprocess and collects all output at once.
+// This is the original (non-streaming) code path.
+func executeBuffered(ctx context.Context, cmd *exec.Cmd, log *slog.Logger) (coretypes.CompletionResponse, error) {
+	var stdout, stderr bytes.Buffer
+	cmd.Stdout = &stdout
+	cmd.Stderr = &stderr
+
+	start := time.Now()
+	err := cmd.Run()
+	elapsed := time.Since(start)
+
+	// Ensure the process group is fully dead after Run returns.
+	if cmd.Process != nil {
+		_ = syscall.Kill(-cmd.Process.Pid, syscall.SIGKILL)
+	}
+
+	log.Debug("claude_code_done",
+		"elapsed_ms", elapsed.Milliseconds(),
+		"stdout_len", stdout.Len(),
+		"stderr_len", stderr.Len(),
+		"exit_err", err,
+	)
+
+	return parseClaudeOutput(stdout.Bytes(), stderr.Bytes(), err, elapsed, log)
+}
+
+// executeStreaming runs the claude subprocess with --output-format stream-json,
+// reads stdout line by line, emits StreamEvents via the callback, and accumulates
+// the final result.
+func executeStreaming(ctx context.Context, cmd *exec.Cmd, streamFn coretypes.StreamFunc, log *slog.Logger) (coretypes.CompletionResponse, error) {
+	stdout, err := cmd.StdoutPipe()
+	if err != nil {
+		return coretypes.CompletionResponse{}, fmt.Errorf("claude-code: stdout pipe: %w", err)
+	}
+
+	var stderr bytes.Buffer
+	cmd.Stderr = &stderr
+
+	start := time.Now()
+	if err := cmd.Start(); err != nil {
+		return coretypes.CompletionResponse{}, fmt.Errorf("claude-code: start: %w", err)
+	}
+
+	// Scan stdout line by line, parsing each JSON event
+	var lastResult *claudeJSONOutput
+	scanner := bufio.NewScanner(stdout)
+	scanner.Buffer(make([]byte, 0, 256*1024), 1024*1024) // allow up to 1MB lines
+
+	for scanner.Scan() {
+		line := scanner.Bytes()
+		if len(line) == 0 {
+			continue
+		}
+
+		evt, parsed, parseErr := parseStreamLine(line)
+		if parseErr != nil {
+			log.Debug("stream_line_parse_error", "err", parseErr, "line_len", len(line))
+			continue
+		}
+
+		// Emit the event to the callback
+		streamFn(evt)
+
+		// Keep track of the final result event
+		if parsed != nil && parsed.Type == "result" {
+			lastResult = parsed
+		}
+	}
+
+	// Wait for the process to finish
+	waitErr := cmd.Wait()
+	elapsed := time.Since(start)
+
+	// Ensure the process group is fully dead after Run returns.
+	if cmd.Process != nil {
+		_ = syscall.Kill(-cmd.Process.Pid, syscall.SIGKILL)
+	}
+
+	if scanErr := scanner.Err(); scanErr != nil {
+		log.Warn("stream_scanner_error", "err", scanErr)
+	}
+
+	log.Debug("claude_code_stream_done",
+		"elapsed_ms", elapsed.Milliseconds(),
+		"stderr_len", stderr.Len(),
+		"exit_err", waitErr,
+	)
+
+	// Build response from the last result event
+	if lastResult != nil {
+		return buildResponseFromResult(lastResult, waitErr, elapsed, log)
+	}
+
+	// Fallback: if no result event was captured, treat stderr/waitErr as error
+	if waitErr != nil {
+		errMsg := stderr.String()
+		if errMsg == "" {
+			errMsg = waitErr.Error()
+		}
+		return coretypes.CompletionResponse{}, fmt.Errorf("claude-code stream process failed: %s", errMsg)
+	}
+
+	return coretypes.CompletionResponse{
+		Content:      "",
+		FinishReason: "stop",
+	}, nil
+}
+
+// buildResponseFromResult converts a parsed result event into a CompletionResponse.
+func buildResponseFromResult(output *claudeJSONOutput, execErr error, elapsed time.Duration, log *slog.Logger) (coretypes.CompletionResponse, error) {
+	if output.IsError {
+		return coretypes.CompletionResponse{}, fmt.Errorf("claude-code error: %s", output.Result)
+	}
+
+	content := output.Result
+	if content == "" && len(output.ContentBlock) > 0 {
+		var parts []string
+		for _, block := range output.ContentBlock {
+			if block.Type == "text" && block.Text != "" {
+				parts = append(parts, block.Text)
+			}
+		}
+		content = strings.Join(parts, "\n")
+	}
+
+	finishReason := "stop"
+	if execErr != nil {
+		finishReason = "error"
+	}
+
+	log.Info("claude_code_response",
+		"content_len", len(content),
+		"input_tokens", output.Usage.InputTokens,
+		"output_tokens", output.Usage.OutputTokens,
+		"num_turns", output.NumTurns,
+		"cost_usd", output.TotalCost,
+		"elapsed_ms", elapsed.Milliseconds(),
+	)
+
+	return coretypes.CompletionResponse{
+		Content: content,
+		Usage: coretypes.TokenUsage{
+			InputTokens:  output.Usage.InputTokens,
+			OutputTokens: output.Usage.OutputTokens,
+			TotalTokens:  output.Usage.InputTokens + output.Usage.OutputTokens,
+		},
+		FinishReason: finishReason,
+	}, nil
+}
+
+// ── Stream event parsing ────────────────────────────────────────────────
+
+// claudeStreamEvent is the raw JSON shape from `claude -p --output-format stream-json`.
+// Each line of stdout is one JSON object with at least a "type" field.
+type claudeStreamEvent struct {
+	Type    string `json:"type"`
+	Subtype string `json:"subtype"`
+
+	// For type=assistant, the message contains content blocks
+	Message *claudeStreamMessage `json:"message"`
+
+	// For type=result — reuse claudeJSONOutput fields
+	IsError   bool             `json:"is_error"`
+	Result    string           `json:"result"`
+	NumTurns  int              `json:"num_turns"`
+	TotalCost float64          `json:"total_cost_usd"`
+	Usage     claudeUsage      `json:"usage"`
+	Content   []claudeContent  `json:"content"`
+}
+
+// claudeStreamMessage represents the assistant message in a stream event.
+type claudeStreamMessage struct {
+	Content []claudeStreamContentBlock `json:"content"`
+}
+
+// claudeStreamContentBlock represents a content block within an assistant message.
+type claudeStreamContentBlock struct {
+	Type  string `json:"type"`
+	Text  string `json:"text"`
+	Name  string `json:"name"`  // tool_use: tool name
+	ID    string `json:"id"`    // tool_use: call ID
+	Input any    `json:"input"` // tool_use: tool input (object or string)
+}
+
+// parseStreamLine parses a single JSON line from the stream-json output.
+// Returns the StreamEvent, optionally the raw parsed result (if type=result),
+// and any parse error.
+func parseStreamLine(line []byte) (coretypes.StreamEvent, *claudeJSONOutput, error) {
+	var raw claudeStreamEvent
+	if err := json.Unmarshal(line, &raw); err != nil {
+		return coretypes.StreamEvent{}, nil, fmt.Errorf("parse stream line: %w", err)
+	}
+
+	switch raw.Type {
+	case "system":
+		// Init event — emit as init
+		return coretypes.StreamEvent{
+			Kind: coretypes.StreamInit,
+		}, nil, nil
+
+	case "assistant":
+		// Assistant message with content blocks — extract tool_use and text events
+		if raw.Message != nil && len(raw.Message.Content) > 0 {
+			// Look for the most interesting content block
+			for _, block := range raw.Message.Content {
+				switch block.Type {
+				case "tool_use":
+					inputStr := truncateToolInput(block.Input)
+					return coretypes.StreamEvent{
+						Kind:      coretypes.StreamToolUse,
+						ToolName:  block.Name,
+						ToolInput: inputStr,
+					}, nil, nil
+				case "tool_result":
+					return coretypes.StreamEvent{
+						Kind: coretypes.StreamToolResult,
+					}, nil, nil
+				case "text":
+					return coretypes.StreamEvent{
+						Kind:    coretypes.StreamText,
+						Content: block.Text,
+					}, nil, nil
+				}
+			}
+		}
+		// Assistant message without interesting content blocks
+		return coretypes.StreamEvent{
+			Kind: coretypes.StreamText,
+		}, nil, nil
+
+	case "result":
+		// Final result event
+		result := &claudeJSONOutput{
+			Type:      raw.Type,
+			Subtype:   raw.Subtype,
+			IsError:   raw.IsError,
+			Result:    raw.Result,
+			NumTurns:  raw.NumTurns,
+			TotalCost: raw.TotalCost,
+			Usage:     raw.Usage,
+		}
+		evt := coretypes.StreamEvent{
+			Kind:    coretypes.StreamResult,
+			Content: raw.Result,
+			IsError: raw.IsError,
+		}
+		return evt, result, nil
+
+	default:
+		// Unknown event type — emit as text with raw type info
+		return coretypes.StreamEvent{
+			Kind:    coretypes.StreamText,
+			Content: raw.Type,
+		}, nil, nil
+	}
+}
+
+// truncateToolInput converts tool input to a short description string.
+func truncateToolInput(input any) string {
+	if input == nil {
+		return ""
+	}
+
+	switch v := input.(type) {
+	case string:
+		return truncateStr(v, 100)
+	case map[string]any:
+		// For tool inputs like {"command": "ls -la"}, extract the most useful field
+		if cmd, ok := v["command"]; ok {
+			return truncateStr(fmt.Sprintf("%v", cmd), 100)
+		}
+		if file, ok := v["file_path"]; ok {
+			return truncateStr(fmt.Sprintf("%v", file), 100)
+		}
+		// Fallback: serialize the whole thing
+		b, err := json.Marshal(v)
+		if err != nil {
+			return ""
+		}
+		return truncateStr(string(b), 100)
+	default:
+		b, err := json.Marshal(v)
+		if err != nil {
+			return ""
+		}
+		return truncateStr(string(b), 100)
+	}
+}
+
+// truncateStr shortens a string to maxLen, appending "..." if truncated.
+func truncateStr(s string, maxLen int) string {
+	if len(s) <= maxLen {
+		return s
+	}
+	return s[:maxLen-3] + "..."
+}
+
+// ── Shared helpers ──────────────────────────────────────────────────────
+
 // resolveWorkDir determines the working directory for the claude subprocess.
 // If configured is empty, it creates a temporary directory to avoid inheriting the launcher's CWD.
 // If configured is non-empty, it ensures the directory exists.
@@ -149,7 +433,17 @@ func resolveWorkDir(configured string, log *slog.Logger) string {
 
 // buildClaudeArgs constructs the CLI arguments for claude -p.
 func buildClaudeArgs(cfg config.ClaudeCodeCfg, req coretypes.CompletionRequest) []string {
-	args := []string{"--print", "--output-format", "json"}
+	outputFormat := "json"
+	if cfg.Streaming && req.StreamFunc != nil {
+		outputFormat = "stream-json"
+	}
+
+	args := []string{"--print", "--output-format", outputFormat}
+
+	// stream-json requires --verbose
+	if outputFormat == "stream-json" {
+		args = append(args, "--verbose")
+	}
 
 	if req.SystemPrompt != "" {
 		args = append(args, "--system-prompt", req.SystemPrompt)
diff --git a/shell/llm/claudecode_test.go b/shell/llm/claudecode_test.go
index 07c87d0..97480e6 100644
--- a/shell/llm/claudecode_test.go
+++ b/shell/llm/claudecode_test.go
@@ -371,6 +371,377 @@ func TestResolveWorkDir_ConfiguredAlreadyExists(t *testing.T) {
 	}
 }
 
+// ── parseStreamLine ─────────────────────────────────────────────────
+
+func TestParseStreamLine_SystemInit(t *testing.T) {
+	line := []byte(`{"type":"system","subtype":"init","session_id":"abc","tools":["Bash","Read"],"model":"sonnet"}`)
+
+	evt, result, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamInit {
+		t.Errorf("kind = %q, want %q", evt.Kind, coretypes.StreamInit)
+	}
+	if result != nil {
+		t.Error("expected nil result for system event")
+	}
+}
+
+func TestParseStreamLine_AssistantToolUse(t *testing.T) {
+	line := []byte(`{"type":"assistant","message":{"content":[{"type":"tool_use","name":"Bash","id":"call_1","input":{"command":"ls -la /tmp"}}]}}`)
+
+	evt, result, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamToolUse {
+		t.Errorf("kind = %q, want %q", evt.Kind, coretypes.StreamToolUse)
+	}
+	if evt.ToolName != "Bash" {
+		t.Errorf("tool_name = %q, want %q", evt.ToolName, "Bash")
+	}
+	if evt.ToolInput != "ls -la /tmp" {
+		t.Errorf("tool_input = %q, want %q", evt.ToolInput, "ls -la /tmp")
+	}
+	if result != nil {
+		t.Error("expected nil result for assistant event")
+	}
+}
+
+func TestParseStreamLine_AssistantToolUseFilePath(t *testing.T) {
+	line := []byte(`{"type":"assistant","message":{"content":[{"type":"tool_use","name":"Read","id":"call_2","input":{"file_path":"/home/user/main.go"}}]}}`)
+
+	evt, _, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamToolUse {
+		t.Errorf("kind = %q, want %q", evt.Kind, coretypes.StreamToolUse)
+	}
+	if evt.ToolName != "Read" {
+		t.Errorf("tool_name = %q, want %q", evt.ToolName, "Read")
+	}
+	if evt.ToolInput != "/home/user/main.go" {
+		t.Errorf("tool_input = %q, want %q", evt.ToolInput, "/home/user/main.go")
+	}
+}
+
+func TestParseStreamLine_AssistantText(t *testing.T) {
+	line := []byte(`{"type":"assistant","message":{"content":[{"type":"text","text":"Hello, world!"}]}}`)
+
+	evt, result, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamText {
+		t.Errorf("kind = %q, want %q", evt.Kind, coretypes.StreamText)
+	}
+	if evt.Content != "Hello, world!" {
+		t.Errorf("content = %q, want %q", evt.Content, "Hello, world!")
+	}
+	if result != nil {
+		t.Error("expected nil result for text event")
+	}
+}
+
+func TestParseStreamLine_AssistantNoContent(t *testing.T) {
+	line := []byte(`{"type":"assistant","message":{"content":[]}}`)
+
+	evt, _, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamText {
+		t.Errorf("kind = %q, want %q", evt.Kind, coretypes.StreamText)
+	}
+}
+
+func TestParseStreamLine_ResultSuccess(t *testing.T) {
+	line := []byte(`{"type":"result","subtype":"success","is_error":false,"result":"The answer is 42","num_turns":3,"total_cost_usd":0.05,"usage":{"input_tokens":100,"output_tokens":50}}`)
+
+	evt, result, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamResult {
+		t.Errorf("kind = %q, want %q", evt.Kind, coretypes.StreamResult)
+	}
+	if evt.Content != "The answer is 42" {
+		t.Errorf("content = %q, want %q", evt.Content, "The answer is 42")
+	}
+	if evt.IsError {
+		t.Error("expected IsError=false")
+	}
+	if result == nil {
+		t.Fatal("expected non-nil result for result event")
+	}
+	if result.Result != "The answer is 42" {
+		t.Errorf("result.Result = %q, want %q", result.Result, "The answer is 42")
+	}
+	if result.Usage.InputTokens != 100 {
+		t.Errorf("input_tokens = %d, want 100", result.Usage.InputTokens)
+	}
+	if result.Usage.OutputTokens != 50 {
+		t.Errorf("output_tokens = %d, want 50", result.Usage.OutputTokens)
+	}
+	if result.TotalCost != 0.05 {
+		t.Errorf("total_cost = %f, want 0.05", result.TotalCost)
+	}
+}
+
+func TestParseStreamLine_ResultError(t *testing.T) {
+	line := []byte(`{"type":"result","subtype":"error","is_error":true,"result":"API key expired","num_turns":0}`)
+
+	evt, result, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamResult {
+		t.Errorf("kind = %q, want %q", evt.Kind, coretypes.StreamResult)
+	}
+	if !evt.IsError {
+		t.Error("expected IsError=true")
+	}
+	if result == nil {
+		t.Fatal("expected non-nil result")
+	}
+	if !result.IsError {
+		t.Error("expected result.IsError=true")
+	}
+}
+
+func TestParseStreamLine_UnknownType(t *testing.T) {
+	line := []byte(`{"type":"future_event","data":"some_value"}`)
+
+	evt, _, err := parseStreamLine(line)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if evt.Kind != coretypes.StreamText {
+		t.Errorf("kind = %q, want %q (fallback for unknown types)", evt.Kind, coretypes.StreamText)
+	}
+}
+
+func TestParseStreamLine_InvalidJSON(t *testing.T) {
+	line := []byte(`not valid json`)
+
+	_, _, err := parseStreamLine(line)
+	if err == nil {
+		t.Error("expected error for invalid JSON")
+	}
+}
+
+// ── truncateToolInput ───────────────────────────────────────────────
+
+func TestTruncateToolInput_Nil(t *testing.T) {
+	got := truncateToolInput(nil)
+	if got != "" {
+		t.Errorf("got %q, want empty", got)
+	}
+}
+
+func TestTruncateToolInput_String(t *testing.T) {
+	got := truncateToolInput("hello world")
+	if got != "hello world" {
+		t.Errorf("got %q, want %q", got, "hello world")
+	}
+}
+
+func TestTruncateToolInput_LongString(t *testing.T) {
+	long := strings.Repeat("x", 200)
+	got := truncateToolInput(long)
+	if len(got) != 100 {
+		t.Errorf("len = %d, want 100", len(got))
+	}
+	if !strings.HasSuffix(got, "...") {
+		t.Error("should end with ...")
+	}
+}
+
+func TestTruncateToolInput_MapWithCommand(t *testing.T) {
+	input := map[string]any{"command": "ls -la /tmp"}
+	got := truncateToolInput(input)
+	if got != "ls -la /tmp" {
+		t.Errorf("got %q, want %q", got, "ls -la /tmp")
+	}
+}
+
+func TestTruncateToolInput_MapWithFilePath(t *testing.T) {
+	input := map[string]any{"file_path": "/home/user/main.go"}
+	got := truncateToolInput(input)
+	if got != "/home/user/main.go" {
+		t.Errorf("got %q, want %q", got, "/home/user/main.go")
+	}
+}
+
+// ── buildClaudeArgs streaming ───────────────────────────────────────
+
+func TestBuildClaudeArgs_StreamingEnabled(t *testing.T) {
+	cfg := config.ClaudeCodeCfg{
+		Streaming: true,
+	}
+	streamFn := func(evt coretypes.StreamEvent) {}
+	req := coretypes.CompletionRequest{
+		StreamFunc: streamFn,
+	}
+
+	args := buildClaudeArgs(cfg, req)
+
+	assertContains(t, args, "--output-format", "stream-json")
+	// Must also include --verbose for stream-json
+	found := false
+	for _, a := range args {
+		if a == "--verbose" {
+			found = true
+		}
+	}
+	if !found {
+		t.Error("--verbose should be present when streaming")
+	}
+}
+
+func TestBuildClaudeArgs_StreamingDisabled(t *testing.T) {
+	cfg := config.ClaudeCodeCfg{
+		Streaming: false,
+	}
+	req := coretypes.CompletionRequest{}
+
+	args := buildClaudeArgs(cfg, req)
+
+	assertContains(t, args, "--output-format", "json")
+	for _, a := range args {
+		if a == "--verbose" {
+			t.Error("--verbose should NOT be present when not streaming")
+		}
+	}
+}
+
+func TestBuildClaudeArgs_StreamingEnabledNoStreamFunc(t *testing.T) {
+	// Streaming config is true but StreamFunc is nil — should fall back to json
+	cfg := config.ClaudeCodeCfg{
+		Streaming: true,
+	}
+	req := coretypes.CompletionRequest{
+		StreamFunc: nil,
+	}
+
+	args := buildClaudeArgs(cfg, req)
+
+	assertContains(t, args, "--output-format", "json")
+}
+
+// ── executeStreaming with mock stdout ────────────────────────────────
+
+func TestExecuteStreaming_MockStdout(t *testing.T) {
+	// Simulate stream-json output by writing lines to an io.Pipe
+	lines := []string{
+		`{"type":"system","subtype":"init","session_id":"test-123"}`,
+		`{"type":"assistant","message":{"content":[{"type":"tool_use","name":"Bash","id":"call_1","input":{"command":"echo hello"}}]}}`,
+		`{"type":"assistant","message":{"content":[{"type":"text","text":"Done executing."}]}}`,
+		`{"type":"result","subtype":"success","is_error":false,"result":"The final answer","num_turns":2,"total_cost_usd":0.01,"usage":{"input_tokens":50,"output_tokens":25}}`,
+	}
+
+	var events []coretypes.StreamEvent
+	streamFn := func(evt coretypes.StreamEvent) {
+		events = append(events, evt)
+	}
+
+	// Parse lines manually using parseStreamLine to verify the full flow
+	var lastResult *claudeJSONOutput
+	for _, line := range lines {
+		evt, parsed, err := parseStreamLine([]byte(line))
+		if err != nil {
+			t.Fatalf("parse error on line: %v", err)
+		}
+		streamFn(evt)
+		if parsed != nil && parsed.Type == "result" {
+			lastResult = parsed
+		}
+	}
+
+	// Verify events
+	if len(events) != 4 {
+		t.Fatalf("expected 4 events, got %d", len(events))
+	}
+	if events[0].Kind != coretypes.StreamInit {
+		t.Errorf("event[0].Kind = %q, want %q", events[0].Kind, coretypes.StreamInit)
+	}
+	if events[1].Kind != coretypes.StreamToolUse {
+		t.Errorf("event[1].Kind = %q, want %q", events[1].Kind, coretypes.StreamToolUse)
+	}
+	if events[1].ToolName != "Bash" {
+		t.Errorf("event[1].ToolName = %q, want %q", events[1].ToolName, "Bash")
+	}
+	if events[1].ToolInput != "echo hello" {
+		t.Errorf("event[1].ToolInput = %q, want %q", events[1].ToolInput, "echo hello")
+	}
+	if events[2].Kind != coretypes.StreamText {
+		t.Errorf("event[2].Kind = %q, want %q", events[2].Kind, coretypes.StreamText)
+	}
+	if events[3].Kind != coretypes.StreamResult {
+		t.Errorf("event[3].Kind = %q, want %q", events[3].Kind, coretypes.StreamResult)
+	}
+	if events[3].Content != "The final answer" {
+		t.Errorf("event[3].Content = %q, want %q", events[3].Content, "The final answer")
+	}
+
+	// Verify final result was captured
+	if lastResult == nil {
+		t.Fatal("expected lastResult to be set")
+	}
+	if lastResult.Result != "The final answer" {
+		t.Errorf("lastResult.Result = %q", lastResult.Result)
+	}
+
+	// Verify buildResponseFromResult
+	resp, err := buildResponseFromResult(lastResult, nil, time.Second, discardLog)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if resp.Content != "The final answer" {
+		t.Errorf("resp.Content = %q", resp.Content)
+	}
+	if resp.Usage.InputTokens != 50 {
+		t.Errorf("input_tokens = %d, want 50", resp.Usage.InputTokens)
+	}
+	if resp.FinishReason != "stop" {
+		t.Errorf("finish_reason = %q, want %q", resp.FinishReason, "stop")
+	}
+}
+
+func TestBuildResponseFromResult_Error(t *testing.T) {
+	result := &claudeJSONOutput{
+		Type:    "result",
+		IsError: true,
+		Result:  "API rate limited",
+	}
+
+	_, err := buildResponseFromResult(result, nil, time.Second, discardLog)
+	if err == nil {
+		t.Fatal("expected error for IsError=true")
+	}
+	if !contains(err.Error(), "API rate limited") {
+		t.Errorf("error = %q, should contain 'API rate limited'", err.Error())
+	}
+}
+
+func TestBuildResponseFromResult_ExecError(t *testing.T) {
+	result := &claudeJSONOutput{
+		Type:   "result",
+		Result: "partial output",
+		Usage:  claudeUsage{InputTokens: 10, OutputTokens: 5},
+	}
+
+	resp, err := buildResponseFromResult(result, errors.New("timeout"), time.Second, discardLog)
+	if err != nil {
+		t.Fatalf("unexpected error: %v", err)
+	}
+	if resp.FinishReason != "error" {
+		t.Errorf("finish_reason = %q, want %q", resp.FinishReason, "error")
+	}
+}
+
 // ── helpers ──────────────────────────────────────────────────────────────
 
 func contains(s, substr string) bool {
diff --git a/shell/matrix/client.go b/shell/matrix/client.go
index 454ac54..cad814a 100644
--- a/shell/matrix/client.go
+++ b/shell/matrix/client.go
@@ -286,6 +286,51 @@ func (c *Client) SendMarkdown(ctx context.Context, roomID, markdown string) erro
 	return err
 }
 
+// SendMarkdownGetID sends a formatted (Markdown) message to a room and returns
+// the event ID of the sent message. Useful for later editing via EditMessage.
+func (c *Client) SendMarkdownGetID(ctx context.Context, roomID, markdown string) (string, error) {
+	html := mdToHTML(markdown)
+	content := &event.MessageEventContent{
+		MsgType:       event.MsgText,
+		Body:          markdown,
+		Format:        event.FormatHTML,
+		FormattedBody: html,
+	}
+	resp, err := c.raw.SendMessageEvent(ctx, id.RoomID(roomID), event.EventMessage, content)
+	if err != nil {
+		return "", err
+	}
+	return resp.EventID.String(), nil
+}
+
+// EditMessage edits a previously sent message in a room using m.replace relation.
+// originalEventID is the event ID of the message to replace.
+// The new content is rendered from markdown.
+func (c *Client) EditMessage(ctx context.Context, roomID, originalEventID, markdown string) error {
+	html := mdToHTML(markdown)
+
+	// Matrix spec: m.new_content holds the replacement, m.relates_to with
+	// rel_type=m.replace points to the original event.
+	content := &event.MessageEventContent{
+		MsgType:       event.MsgText,
+		Body:          "* " + markdown, // per spec: prefix with "* " for fallback
+		Format:        event.FormatHTML,
+		FormattedBody: "* " + html,
+		RelatesTo: &event.RelatesTo{
+			Type:    event.RelReplace,
+			EventID: id.EventID(originalEventID),
+		},
+		NewContent: &event.MessageEventContent{
+			MsgType:       event.MsgText,
+			Body:          markdown,
+			Format:        event.FormatHTML,
+			FormattedBody: html,
+		},
+	}
+	_, err := c.raw.SendMessageEvent(ctx, id.RoomID(roomID), event.EventMessage, content)
+	return err
+}
+
 // mdToHTML converts a Markdown string to HTML using goldmark with full extensions.
 var mdParser = goldmark.New(
 	goldmark.WithExtensions(