diff --git a/packages/cli/src/ui/contexts/KeypressContext.tsx b/packages/cli/src/ui/contexts/KeypressContext.tsx
index e81747957..142a0c63c 100644
--- a/packages/cli/src/ui/contexts/KeypressContext.tsx
+++ b/packages/cli/src/ui/contexts/KeypressContext.tsx
@@ -44,6 +44,11 @@ const ESC = '\u001B';
 export const PASTE_MODE_PREFIX = `${ESC}[200~`;
 export const PASTE_MODE_SUFFIX = `${ESC}[201~`;
 export const DRAG_COMPLETION_TIMEOUT_MS = 100; // Broadcast full path after 100ms if no more input
+// Kitty sequence timeout: 200ms balances between:
+// - Too short: prematurely clear valid sequences during slow input
+// - Too long: delayed recovery from interrupted sequences (e.g., IME interruptions)
+// Based on empirical testing with IME input patterns in VS Code integrated terminal.
+export const KITTY_SEQUENCE_TIMEOUT_MS = 200;
 export const SINGLE_QUOTE = "'";
 export const DOUBLE_QUOTE = '"';
 
@@ -172,12 +177,44 @@ export function KeypressProvider({
 
     let isPaste = false;
     let pasteBuffer = Buffer.alloc(0);
-    let kittySequenceBuffer = '';
+    const kittySequenceBufferRef = { current: '' };
+    let kittySequenceTimeout: NodeJS.Timeout | null = null;
     let backslashTimeout: NodeJS.Timeout | null = null;
     let waitingForEnterAfterBackslash = false;
     let rawDataBuffer = Buffer.alloc(0);
     let rawFlushTimeout: NodeJS.Timeout | null = null;
 
+    const updateKittyBuffer = (value: string) => {
+      kittySequenceBufferRef.current = value;
+    };
+
+    const clearKittyTimeout = () => {
+      if (kittySequenceTimeout) {
+        clearTimeout(kittySequenceTimeout);
+        kittySequenceTimeout = null;
+      }
+    };
+
+    const startKittyTimeout = () => {
+      clearKittyTimeout();
+      kittySequenceTimeout = setTimeout(() => {
+        if (kittySequenceBufferRef.current) {
+          if (debugKeystrokeLogging) {
+            debugLogger.debug(
+              '[DEBUG] Kitty buffer timeout, clearing:',
+              kittySequenceBufferRef.current,
+            );
+          }
+          kittySequenceBufferRef.current = '';
+        }
+      }, KITTY_SEQUENCE_TIMEOUT_MS);
+    };
+
+    const clearKittyBufferAndTimeout = () => {
+      clearKittyTimeout();
+      kittySequenceBufferRef.current = '';
+    };
+
     const createPrintableKey = (char: string): Key => {
       const printableName =
         char === ' '
@@ -661,13 +698,13 @@ export function KeypressProvider({
         (key.ctrl && key.name === 'c') ||
         key.sequence === `${ESC}${KITTY_CTRL_C}`
       ) {
-        if (kittySequenceBuffer && debugKeystrokeLogging) {
+        if (kittySequenceBufferRef.current && debugKeystrokeLogging) {
           debugLogger.debug(
             '[DEBUG] Kitty buffer cleared on Ctrl+C:',
-            kittySequenceBuffer,
+            kittySequenceBufferRef.current,
           );
         }
-        kittySequenceBuffer = '';
+        clearKittyBufferAndTimeout();
         if (key.sequence === `${ESC}${KITTY_CTRL_C}`) {
           broadcast({
             name: 'c',
@@ -686,19 +723,20 @@ export function KeypressProvider({
 
       if (kittyProtocolEnabled) {
         if (
-          kittySequenceBuffer ||
+          kittySequenceBufferRef.current ||
           (key.sequence.startsWith(`${ESC}[`) &&
             !key.sequence.startsWith(PASTE_MODE_PREFIX) &&
             !key.sequence.startsWith(PASTE_MODE_SUFFIX) &&
             !key.sequence.startsWith(FOCUS_IN) &&
             !key.sequence.startsWith(FOCUS_OUT))
         ) {
-          kittySequenceBuffer += key.sequence;
+          updateKittyBuffer(kittySequenceBufferRef.current + key.sequence);
+          startKittyTimeout();
 
           if (debugKeystrokeLogging) {
             debugLogger.debug(
               '[DEBUG] Kitty buffer accumulating:',
-              kittySequenceBuffer,
+              kittySequenceBufferRef.current,
             );
           }
 
@@ -707,15 +745,15 @@ export function KeypressProvider({
           // prefix is incomplete or invalid, skip to the next CSI introducer
           // (ESC[) so that a following valid sequence can still be parsed.
           let bufferedInputHandled = false;
-          while (kittySequenceBuffer) {
-            const parsed = parseKittyPrefix(kittySequenceBuffer);
+          while (kittySequenceBufferRef.current) {
+            const parsed = parseKittyPrefix(kittySequenceBufferRef.current);
             if (parsed) {
               if (debugKeystrokeLogging) {
-                const parsedSequence = kittySequenceBuffer.slice(
+                const parsedSequence = kittySequenceBufferRef.current.slice(
                   0,
                   parsed.length,
                 );
-                if (kittySequenceBuffer.length > parsed.length) {
+                if (kittySequenceBufferRef.current.length > parsed.length) {
                   debugLogger.debug(
                     '[DEBUG] Kitty sequence parsed successfully (prefix):',
                     parsedSequence,
@@ -728,29 +766,45 @@ export function KeypressProvider({
                 }
               }
               // Consume the parsed prefix and broadcast it.
-              kittySequenceBuffer = kittySequenceBuffer.slice(parsed.length);
+              updateKittyBuffer(
+                kittySequenceBufferRef.current.slice(parsed.length),
+              );
+              if (!kittySequenceBufferRef.current) {
+                clearKittyTimeout();
+              }
               broadcast(parsed.key);
               bufferedInputHandled = true;
               continue;
             }
 
-            const completeUnsupportedCsiLength =
-              getCompleteCsiSequenceLength(kittySequenceBuffer);
+            const completeUnsupportedCsiLength = getCompleteCsiSequenceLength(
+              kittySequenceBufferRef.current,
+            );
             if (completeUnsupportedCsiLength) {
               if (debugKeystrokeLogging) {
                 debugLogger.debug(
                   '[DEBUG] Dropping unsupported complete CSI sequence:',
-                  kittySequenceBuffer.slice(0, completeUnsupportedCsiLength),
+                  kittySequenceBufferRef.current.slice(
+                    0,
+                    completeUnsupportedCsiLength,
+                  ),
                 );
               }
-              kittySequenceBuffer = kittySequenceBuffer.slice(
-                completeUnsupportedCsiLength,
+              updateKittyBuffer(
+                kittySequenceBufferRef.current.slice(
+                  completeUnsupportedCsiLength,
+                ),
               );
+              if (!kittySequenceBufferRef.current) {
+                clearKittyTimeout();
+              }
               bufferedInputHandled = true;
               continue;
             }
 
-            const plainTextPrefix = parsePlainTextPrefix(kittySequenceBuffer);
+            const plainTextPrefix = parsePlainTextPrefix(
+              kittySequenceBufferRef.current,
+            );
             if (plainTextPrefix) {
               if (debugKeystrokeLogging) {
                 debugLogger.debug(
@@ -758,24 +812,35 @@ export function KeypressProvider({
                   plainTextPrefix.key.sequence,
                 );
               }
-              kittySequenceBuffer = kittySequenceBuffer.slice(
-                plainTextPrefix.length,
+              updateKittyBuffer(
+                kittySequenceBufferRef.current.slice(plainTextPrefix.length),
               );
+              if (!kittySequenceBufferRef.current) {
+                clearKittyTimeout();
+              }
               broadcast(plainTextPrefix.key);
               bufferedInputHandled = true;
               continue;
             }
 
             // Look for the next potential CSI start beyond index 0
-            const nextStart = kittySequenceBuffer.indexOf(`${ESC}[`, 1);
+            const nextStart = kittySequenceBufferRef.current.indexOf(
+              `${ESC}[`,
+              1,
+            );
             if (nextStart > 0) {
               if (debugKeystrokeLogging) {
                 debugLogger.debug(
                   '[DEBUG] Skipping incomplete/invalid CSI prefix:',
-                  kittySequenceBuffer.slice(0, nextStart),
+                  kittySequenceBufferRef.current.slice(0, nextStart),
                 );
               }
-              kittySequenceBuffer = kittySequenceBuffer.slice(nextStart);
+              updateKittyBuffer(
+                kittySequenceBufferRef.current.slice(nextStart),
+              );
+              if (!kittySequenceBufferRef.current) {
+                clearKittyTimeout();
+              }
               bufferedInputHandled = true;
               continue;
             }
@@ -784,27 +849,29 @@ export function KeypressProvider({
           if (bufferedInputHandled) return;
 
           if (config?.getDebugMode() || debugKeystrokeLogging) {
-            const codes = Array.from(kittySequenceBuffer).map((ch) =>
-              ch.charCodeAt(0),
+            const codes = Array.from(kittySequenceBufferRef.current).map(
+              (ch: string) => ch.charCodeAt(0),
             );
             debugLogger.warn('Kitty sequence buffer has char codes:', codes);
           }
 
-          if (kittySequenceBuffer.length > MAX_KITTY_SEQUENCE_LENGTH) {
+          if (
+            kittySequenceBufferRef.current.length > MAX_KITTY_SEQUENCE_LENGTH
+          ) {
             if (debugKeystrokeLogging) {
               debugLogger.debug(
                 '[DEBUG] Kitty buffer overflow, clearing:',
-                kittySequenceBuffer,
+                kittySequenceBufferRef.current,
               );
             }
             if (config) {
               const event = new KittySequenceOverflowEvent(
-                kittySequenceBuffer.length,
-                kittySequenceBuffer,
+                kittySequenceBufferRef.current.length,
+                kittySequenceBufferRef.current,
               );
               logKittySequenceOverflow(config, event);
             }
-            kittySequenceBuffer = '';
+            clearKittyBufferAndTimeout();
           } else {
             return;
           }
@@ -965,6 +1032,8 @@ export function KeypressProvider({
         backslashTimeout = null;
       }
 
+      clearKittyBufferAndTimeout();
+
       if (rawFlushTimeout) {
         clearTimeout(rawFlushTimeout);
         rawFlushTimeout = null;