diff --git a/packages/server/src/server/session.ts b/packages/server/src/server/session.ts
index acafe7471..b7eee2636 100644
--- a/packages/server/src/server/session.ts
+++ b/packages/server/src/server/session.ts
@@ -909,6 +909,12 @@ export class Session {
       hasBinaryChannel: () => this.onBinaryMessage !== null,
       isPathWithinRoot: (rootPath, candidatePath) => this.isPathWithinRoot(rootPath, candidatePath),
       sessionLogger: this.sessionLogger,
+      listTerminalWorkspaceRoots: async () => {
+        const workspaces = await this.workspaceRegistry.list();
+        return workspaces
+          .filter((workspace) => !workspace.archivedAt)
+          .map((workspace) => workspace.cwd);
+      },
       clientSupportsWrapReflow: () =>
         this.clientCapabilities.has(CLIENT_CAPS.terminalReflowableSnapshot),
     });
diff --git a/packages/server/src/terminal/terminal-session-controller.test.ts b/packages/server/src/terminal/terminal-session-controller.test.ts
index b22288337..ccca2f7e2 100644
--- a/packages/server/src/terminal/terminal-session-controller.test.ts
+++ b/packages/server/src/terminal/terminal-session-controller.test.ts
@@ -319,4 +319,71 @@ describe("terminal-session-controller subdirectory aggregation", () => {
       },
     ]);
   });
+
+  test("keeps nested workspace terminals out of the parent workspace terminal list", async () => {
+    const rootCwd = "/work/repo";
+    const worktreeCwd = "/work/repo/.dev/paseo-home/worktrees/hash/feature-a";
+    const rootTerminal = listSession({ id: "root-term", name: "Terminal 1", cwd: rootCwd });
+    const worktreeTerminal = listSession({
+      id: "worktree-term",
+      name: "Feature",
+      cwd: worktreeCwd,
+    });
+    const terminalManager: TerminalManager = {
+      getTerminals: vi.fn(async (cwd: string) =>
+        cwd === rootCwd ? [rootTerminal, worktreeTerminal] : [worktreeTerminal],
+      ),
+      createTerminal: vi.fn(),
+      registerCwdEnv: vi.fn(),
+      getTerminal: vi.fn(),
+      getTerminalState: vi.fn(),
+      setTerminalTitle: vi.fn(),
+      killTerminal: vi.fn(),
+      killTerminalAndWait: vi.fn(),
+      captureTerminal: vi.fn(),
+      listDirectories: vi.fn(() => [rootCwd, worktreeCwd]),
+      killAll: vi.fn(),
+      subscribeTerminalsChanged: vi.fn(() => vi.fn()),
+    };
+    const outboundMessages: SessionOutboundMessage[] = [];
+    const controller = new TerminalSessionController({
+      terminalManager,
+      emit: (message) => outboundMessages.push(message),
+      emitBinary: vi.fn(),
+      hasBinaryChannel: () => true,
+      isPathWithinRoot: isSameOrDescendantPath,
+      sessionLogger: createLogger(),
+      listTerminalWorkspaceRoots: async () => [rootCwd, worktreeCwd],
+    });
+
+    await controller.dispatch({
+      type: "list_terminals_request",
+      cwd: rootCwd,
+      requestId: "req-root",
+    });
+    await controller.dispatch({
+      type: "list_terminals_request",
+      cwd: worktreeCwd,
+      requestId: "req-worktree",
+    });
+
+    expect(outboundMessages).toEqual([
+      {
+        type: "list_terminals_response",
+        payload: {
+          cwd: rootCwd,
+          terminals: [{ id: "root-term", name: "Terminal 1" }],
+          requestId: "req-root",
+        },
+      },
+      {
+        type: "list_terminals_response",
+        payload: {
+          cwd: worktreeCwd,
+          terminals: [{ id: "worktree-term", name: "Feature" }],
+          requestId: "req-worktree",
+        },
+      },
+    ]);
+  });
 });
diff --git a/packages/server/src/terminal/terminal-session-controller.ts b/packages/server/src/terminal/terminal-session-controller.ts
index 678b2c6c2..88f876232 100644
--- a/packages/server/src/terminal/terminal-session-controller.ts
+++ b/packages/server/src/terminal/terminal-session-controller.ts
@@ -65,6 +65,7 @@ export interface TerminalSessionControllerOptions {
   hasBinaryChannel: () => boolean;
   isPathWithinRoot: (rootPath: string, candidatePath: string) => boolean;
   sessionLogger: pino.Logger;
+  listTerminalWorkspaceRoots?: () => Promise<readonly string[]>;
   // Whether the connected client can reflow restored snapshots. When true the
   // daemon attaches per-row soft-wrap flags to snapshots; otherwise it omits them
   // so old (strict-schema) clients still parse the snapshot.
@@ -108,6 +109,7 @@ export class TerminalSessionController {
   private readonly hasBinaryChannel: () => boolean;
   private readonly isPathWithinRoot: (rootPath: string, candidatePath: string) => boolean;
   private readonly sessionLogger: pino.Logger;
+  private readonly listTerminalWorkspaceRoots: () => Promise<readonly string[]>;
   private readonly clientSupportsWrapReflow: () => boolean;
 
   private readonly subscribedDirectories = new Set<string>();
@@ -124,6 +126,7 @@ export class TerminalSessionController {
     this.hasBinaryChannel = options.hasBinaryChannel;
     this.isPathWithinRoot = options.isPathWithinRoot;
     this.sessionLogger = options.sessionLogger;
+    this.listTerminalWorkspaceRoots = options.listTerminalWorkspaceRoots ?? (async () => []);
     this.clientSupportsWrapReflow = options.clientSupportsWrapReflow ?? (() => false);
   }
 
@@ -327,7 +330,7 @@ export class TerminalSessionController {
       return;
     }
     try {
-      const terminals = await this.terminalManager.getTerminals(cwd);
+      const terminals = await this.getTerminalsForWorkspaceRoot(cwd);
       for (const terminal of terminals) {
         this.ensureExitSubscription(terminal);
       }
@@ -359,7 +362,7 @@ export class TerminalSessionController {
     try {
       const terminals =
         typeof msg.cwd === "string"
-          ? await this.terminalManager.getTerminals(msg.cwd)
+          ? await this.getTerminalsForWorkspaceRoot(msg.cwd)
           : await this.getAllTerminalSessions();
       for (const terminal of terminals) {
         this.ensureExitSubscription(terminal);
@@ -397,6 +400,56 @@ export class TerminalSessionController {
     return terminalsByDirectory.flat();
   }
 
+  private async getTerminalsForWorkspaceRoot(cwd: string): Promise<TerminalSession[]> {
+    if (!this.terminalManager) {
+      return [];
+    }
+
+    const terminals = await this.terminalManager.getTerminals(cwd);
+    const workspaceRoots = await this.listTerminalWorkspaceRoots();
+    if (workspaceRoots.length === 0) {
+      return terminals;
+    }
+
+    return terminals.filter((terminal) =>
+      this.terminalBelongsToRoot(cwd, terminal.cwd, workspaceRoots),
+    );
+  }
+
+  private terminalBelongsToRoot(
+    rootCwd: string,
+    terminalCwd: string,
+    workspaceRoots: readonly string[],
+  ): boolean {
+    const ownerRoot = this.resolveTerminalOwnerRoot(terminalCwd, workspaceRoots);
+    if (!ownerRoot) {
+      return this.isPathWithinRoot(rootCwd, terminalCwd);
+    }
+    return this.isSamePath(rootCwd, ownerRoot);
+  }
+
+  private resolveTerminalOwnerRoot(
+    terminalCwd: string,
+    workspaceRoots: readonly string[],
+  ): string | null {
+    let ownerRoot: string | null = null;
+    for (const workspaceRoot of workspaceRoots) {
+      if (!this.isPathWithinRoot(workspaceRoot, terminalCwd)) {
+        continue;
+      }
+      if (!ownerRoot || workspaceRoot.length > ownerRoot.length) {
+        ownerRoot = workspaceRoot;
+      }
+    }
+    return ownerRoot;
+  }
+
+  private isSamePath(firstPath: string, secondPath: string): boolean {
+    return (
+      this.isPathWithinRoot(firstPath, secondPath) && this.isPathWithinRoot(secondPath, firstPath)
+    );
+  }
+
   private async handleCreateTerminalRequest(msg: CreateTerminalRequest): Promise<void> {
     if (!this.terminalManager) {
       this.emit({