diff --git a/integration-tests/terminal-capture/package.json b/integration-tests/terminal-capture/package.json
index ef55e63ef..46d602c22 100644
--- a/integration-tests/terminal-capture/package.json
+++ b/integration-tests/terminal-capture/package.json
@@ -10,7 +10,7 @@
     "capture:all": "npx tsx run.ts scenarios/all.ts"
   },
   "dependencies": {
-    "@lydell/node-pty": "1.1.0",
+    "@lydell/node-pty": "1.2.0-beta.10",
     "@xterm/xterm": "^5.5.0",
     "playwright": "^1.50.0",
     "strip-ansi": "^7.1.2"
diff --git a/package-lock.json b/package-lock.json
index bfa901db3..68a6cb6c9 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -58,12 +58,12 @@
         "node": ">=20.0.0"
       },
       "optionalDependencies": {
-        "@lydell/node-pty": "1.1.0",
-        "@lydell/node-pty-darwin-arm64": "1.1.0",
-        "@lydell/node-pty-darwin-x64": "1.1.0",
-        "@lydell/node-pty-linux-x64": "1.1.0",
-        "@lydell/node-pty-win32-arm64": "1.1.0",
-        "@lydell/node-pty-win32-x64": "1.1.0"
+        "@lydell/node-pty": "1.2.0-beta.10",
+        "@lydell/node-pty-darwin-arm64": "1.2.0-beta.10",
+        "@lydell/node-pty-darwin-x64": "1.2.0-beta.10",
+        "@lydell/node-pty-linux-x64": "1.2.0-beta.10",
+        "@lydell/node-pty-win32-arm64": "1.2.0-beta.10",
+        "@lydell/node-pty-win32-x64": "1.2.0-beta.10"
       }
     },
     "node_modules/@adobe/css-tools": {
@@ -2159,24 +2159,24 @@
       "license": "MIT"
     },
     "node_modules/@lydell/node-pty": {
-      "version": "1.1.0",
-      "resolved": "https://registry.npmjs.org/@lydell/node-pty/-/node-pty-1.1.0.tgz",
-      "integrity": "sha512-VDD8LtlMTOrPKWMXUAcB9+LTktzuunqrMwkYR1DMRBkS6LQrCt+0/Ws1o2rMml/n3guePpS7cxhHF7Nm5K4iMw==",
+      "version": "1.2.0-beta.10",
+      "resolved": "https://registry.npmjs.org/@lydell/node-pty/-/node-pty-1.2.0-beta.10.tgz",
+      "integrity": "sha512-Fv+A3+MZVA8qhkBIZsM1E6dCdHNMyXXz22mAYiMWd03LlyK///F3OH6CKPX9mj4id7LUlxpr45yPzyBVy9aDPw==",
       "license": "MIT",
       "optional": true,
       "optionalDependencies": {
-        "@lydell/node-pty-darwin-arm64": "1.1.0",
-        "@lydell/node-pty-darwin-x64": "1.1.0",
-        "@lydell/node-pty-linux-arm64": "1.1.0",
-        "@lydell/node-pty-linux-x64": "1.1.0",
-        "@lydell/node-pty-win32-arm64": "1.1.0",
-        "@lydell/node-pty-win32-x64": "1.1.0"
+        "@lydell/node-pty-darwin-arm64": "1.2.0-beta.10",
+        "@lydell/node-pty-darwin-x64": "1.2.0-beta.10",
+        "@lydell/node-pty-linux-arm64": "1.2.0-beta.10",
+        "@lydell/node-pty-linux-x64": "1.2.0-beta.10",
+        "@lydell/node-pty-win32-arm64": "1.2.0-beta.10",
+        "@lydell/node-pty-win32-x64": "1.2.0-beta.10"
       }
     },
     "node_modules/@lydell/node-pty-darwin-arm64": {
-      "version": "1.1.0",
-      "resolved": "https://registry.npmjs.org/@lydell/node-pty-darwin-arm64/-/node-pty-darwin-arm64-1.1.0.tgz",
-      "integrity": "sha512-7kFD+owAA61qmhJCtoMbqj3Uvff3YHDiU+4on5F2vQdcMI3MuwGi7dM6MkFG/yuzpw8LF2xULpL71tOPUfxs0w==",
+      "version": "1.2.0-beta.10",
+      "resolved": "https://registry.npmjs.org/@lydell/node-pty-darwin-arm64/-/node-pty-darwin-arm64-1.2.0-beta.10.tgz",
+      "integrity": "sha512-C+eqDyRNHRYvx7RaHj6VVCx6nCpRBPuuxhTcc3JH3GuBMoxTsYeY4GkWH2XOktrgbAq1BG8e/Y8bu/wNQreCEw==",
       "cpu": [
         "arm64"
       ],
@@ -2187,9 +2187,9 @@
       ]
     },
     "node_modules/@lydell/node-pty-darwin-x64": {
-      "version": "1.1.0",
-      "resolved": "https://registry.npmjs.org/@lydell/node-pty-darwin-x64/-/node-pty-darwin-x64-1.1.0.tgz",
-      "integrity": "sha512-XZdvqj5FjAMjH8bdp0YfaZjur5DrCIDD1VYiE9EkkYVMDQqRUPHYV3U8BVEQVT9hYfjmpr7dNaELF2KyISWSNA==",
+      "version": "1.2.0-beta.10",
+      "resolved": "https://registry.npmjs.org/@lydell/node-pty-darwin-x64/-/node-pty-darwin-x64-1.2.0-beta.10.tgz",
+      "integrity": "sha512-aZoIK6HtJO5BiT4ELm683U4dyHtt8b7wNgq3NJqYAQwSXrcPv576Z8vY3BIulVxfcFkht/SPLKou9TtdFXdNpg==",
       "cpu": [
         "x64"
       ],
@@ -2200,9 +2200,9 @@
       ]
     },
     "node_modules/@lydell/node-pty-linux-arm64": {
-      "version": "1.1.0",
-      "resolved": "https://registry.npmjs.org/@lydell/node-pty-linux-arm64/-/node-pty-linux-arm64-1.1.0.tgz",
-      "integrity": "sha512-yyDBmalCfHpLiQMT2zyLcqL2Fay4Xy7rIs8GH4dqKLnEviMvPGOK7LADVkKAsbsyXBSISL3Lt1m1MtxhPH6ckg==",
+      "version": "1.2.0-beta.10",
+      "resolved": "https://registry.npmjs.org/@lydell/node-pty-linux-arm64/-/node-pty-linux-arm64-1.2.0-beta.10.tgz",
+      "integrity": "sha512-0cKX2iMyXFNBE4fGtGK6B7IkdXcDMZajyEDoGMOgQQs/DDtoI5tSPcBcqNY9VitVrsRQA8+gFt6eKYU9Ye/lUA==",
       "cpu": [
         "arm64"
       ],
@@ -2213,9 +2213,9 @@
       ]
     },
     "node_modules/@lydell/node-pty-linux-x64": {
-      "version": "1.1.0",
-      "resolved": "https://registry.npmjs.org/@lydell/node-pty-linux-x64/-/node-pty-linux-x64-1.1.0.tgz",
-      "integrity": "sha512-NcNqRTD14QT+vXcEuqSSvmWY+0+WUBn2uRE8EN0zKtDpIEr9d+YiFj16Uqds6QfcLCHfZmC+Ls7YzwTaqDnanA==",
+      "version": "1.2.0-beta.10",
+      "resolved": "https://registry.npmjs.org/@lydell/node-pty-linux-x64/-/node-pty-linux-x64-1.2.0-beta.10.tgz",
+      "integrity": "sha512-J9HnxvSzEeMH748+Ul1VrmCLWMo7iCVJy9EGijRR62+YO/Yk5GaCydUTZ+KzlH0/X5aTrgt5cfiof4vx45tRRg==",
       "cpu": [
         "x64"
       ],
@@ -2226,9 +2226,9 @@
       ]
     },
     "node_modules/@lydell/node-pty-win32-arm64": {
-      "version": "1.1.0",
-      "resolved": "https://registry.npmjs.org/@lydell/node-pty-win32-arm64/-/node-pty-win32-arm64-1.1.0.tgz",
-      "integrity": "sha512-JOMbCou+0fA7d/m97faIIfIU0jOv8sn2OR7tI45u3AmldKoKoLP8zHY6SAvDDnI3fccO1R2HeR1doVjpS7HM0w==",
+      "version": "1.2.0-beta.10",
+      "resolved": "https://registry.npmjs.org/@lydell/node-pty-win32-arm64/-/node-pty-win32-arm64-1.2.0-beta.10.tgz",
+      "integrity": "sha512-PlDJpJX/pnKyy6OmADKzhf+INZDDnzTBGaI0LT4laVNc6NblZNqUSkCMjLFWbeakeuQp0VG37M49WQSN9FDfeA==",
       "cpu": [
         "arm64"
       ],
@@ -2239,9 +2239,9 @@
       ]
     },
     "node_modules/@lydell/node-pty-win32-x64": {
-      "version": "1.1.0",
-      "resolved": "https://registry.npmjs.org/@lydell/node-pty-win32-x64/-/node-pty-win32-x64-1.1.0.tgz",
-      "integrity": "sha512-3N56BZ+WDFnUMYRtsrr7Ky2mhWGl9xXcyqR6cexfuCqcz9RNWL+KoXRv/nZylY5dYaXkft4JaR1uVu+roiZDAw==",
+      "version": "1.2.0-beta.10",
+      "resolved": "https://registry.npmjs.org/@lydell/node-pty-win32-x64/-/node-pty-win32-x64-1.2.0-beta.10.tgz",
+      "integrity": "sha512-ExFgWrzyldNAMi45U9PLIOu+g/RatP+f0c/dZxaooifME6yLW32BoHveH26/TtoAjZyJrc2iL0u48pgnR1fzmg==",
       "cpu": [
         "x64"
       ],
@@ -19529,12 +19529,12 @@
         "node": ">=20"
       },
       "optionalDependencies": {
-        "@lydell/node-pty": "1.1.0",
-        "@lydell/node-pty-darwin-arm64": "1.1.0",
-        "@lydell/node-pty-darwin-x64": "1.1.0",
-        "@lydell/node-pty-linux-x64": "1.1.0",
-        "@lydell/node-pty-win32-arm64": "1.1.0",
-        "@lydell/node-pty-win32-x64": "1.1.0"
+        "@lydell/node-pty": "1.2.0-beta.10",
+        "@lydell/node-pty-darwin-arm64": "1.2.0-beta.10",
+        "@lydell/node-pty-darwin-x64": "1.2.0-beta.10",
+        "@lydell/node-pty-linux-x64": "1.2.0-beta.10",
+        "@lydell/node-pty-win32-arm64": "1.2.0-beta.10",
+        "@lydell/node-pty-win32-x64": "1.2.0-beta.10"
       }
     },
     "packages/core/node_modules/@google/genai": {
diff --git a/package.json b/package.json
index 85576afdf..44f8438d2 100644
--- a/package.json
+++ b/package.json
@@ -117,12 +117,12 @@
     "simple-git": "^3.28.0"
   },
   "optionalDependencies": {
-    "@lydell/node-pty": "1.1.0",
-    "@lydell/node-pty-darwin-arm64": "1.1.0",
-    "@lydell/node-pty-darwin-x64": "1.1.0",
-    "@lydell/node-pty-linux-x64": "1.1.0",
-    "@lydell/node-pty-win32-arm64": "1.1.0",
-    "@lydell/node-pty-win32-x64": "1.1.0"
+    "@lydell/node-pty": "1.2.0-beta.10",
+    "@lydell/node-pty-darwin-arm64": "1.2.0-beta.10",
+    "@lydell/node-pty-darwin-x64": "1.2.0-beta.10",
+    "@lydell/node-pty-linux-x64": "1.2.0-beta.10",
+    "@lydell/node-pty-win32-arm64": "1.2.0-beta.10",
+    "@lydell/node-pty-win32-x64": "1.2.0-beta.10"
   },
   "lint-staged": {
     "*.{js,jsx,ts,tsx}": [
diff --git a/packages/core/package.json b/packages/core/package.json
index d42076816..bf6dda2dd 100644
--- a/packages/core/package.json
+++ b/packages/core/package.json
@@ -74,12 +74,12 @@
     "ws": "^8.18.0"
   },
   "optionalDependencies": {
-    "@lydell/node-pty": "1.1.0",
-    "@lydell/node-pty-darwin-arm64": "1.1.0",
-    "@lydell/node-pty-darwin-x64": "1.1.0",
-    "@lydell/node-pty-linux-x64": "1.1.0",
-    "@lydell/node-pty-win32-arm64": "1.1.0",
-    "@lydell/node-pty-win32-x64": "1.1.0"
+    "@lydell/node-pty": "1.2.0-beta.10",
+    "@lydell/node-pty-darwin-arm64": "1.2.0-beta.10",
+    "@lydell/node-pty-darwin-x64": "1.2.0-beta.10",
+    "@lydell/node-pty-linux-x64": "1.2.0-beta.10",
+    "@lydell/node-pty-win32-arm64": "1.2.0-beta.10",
+    "@lydell/node-pty-win32-x64": "1.2.0-beta.10"
   },
   "devDependencies": {
     "@qwen-code/qwen-code-test-utils": "file:../test-utils",
diff --git a/packages/core/tsconfig.json b/packages/core/tsconfig.json
index 06e3256b9..acd89b461 100644
--- a/packages/core/tsconfig.json
+++ b/packages/core/tsconfig.json
@@ -4,7 +4,10 @@
     "outDir": "dist",
     "lib": ["DOM", "DOM.Iterable", "ES2023"],
     "composite": true,
-    "types": ["node", "vitest/globals"]
+    "types": ["node", "vitest/globals"],
+    "paths": {
+      "@lydell/node-pty": ["../../node_modules/@lydell/node-pty/node-pty.d.ts"]
+    }
   },
   "include": ["index.ts", "src/**/*.ts", "src/**/*.json"],
   "exclude": ["node_modules", "dist"]
diff --git a/packages/vscode-ide-companion/tsconfig.json b/packages/vscode-ide-companion/tsconfig.json
index 886ddb4b6..c9c55c8cb 100644
--- a/packages/vscode-ide-companion/tsconfig.json
+++ b/packages/vscode-ide-companion/tsconfig.json
@@ -8,7 +8,10 @@
     "jsxImportSource": "react",
     "sourceMap": true,
     "strict": true,
-    "skipLibCheck": true
+    "skipLibCheck": true,
+    "paths": {
+      "@lydell/node-pty": ["../../node_modules/@lydell/node-pty/node-pty.d.ts"]
+    }
     /* Additional Checks */
     // "noImplicitReturns": true, /* Report error when not all code paths in function return a value. */
     // "noFallthroughCasesInSwitch": true, /* Report errors for fallthrough cases in switch statement. */
diff --git a/scripts/prepare-package.js b/scripts/prepare-package.js
index d38bf2e1e..28811c0fb 100644
--- a/scripts/prepare-package.js
+++ b/scripts/prepare-package.js
@@ -169,12 +169,12 @@ const distPackageJson = {
   config: rootPackageJson.config,
   dependencies: {},
   optionalDependencies: {
-    '@lydell/node-pty': '1.1.0',
-    '@lydell/node-pty-darwin-arm64': '1.1.0',
-    '@lydell/node-pty-darwin-x64': '1.1.0',
-    '@lydell/node-pty-linux-x64': '1.1.0',
-    '@lydell/node-pty-win32-arm64': '1.1.0',
-    '@lydell/node-pty-win32-x64': '1.1.0',
+    '@lydell/node-pty': '1.2.0-beta.10',
+    '@lydell/node-pty-darwin-arm64': '1.2.0-beta.10',
+    '@lydell/node-pty-darwin-x64': '1.2.0-beta.10',
+    '@lydell/node-pty-linux-x64': '1.2.0-beta.10',
+    '@lydell/node-pty-win32-arm64': '1.2.0-beta.10',
+    '@lydell/node-pty-win32-x64': '1.2.0-beta.10',
     '@teddyzhu/clipboard': '0.0.5',
     '@teddyzhu/clipboard-darwin-arm64': '0.0.5',
     '@teddyzhu/clipboard-darwin-x64': '0.0.5',