diff --git a/packages/app/src/contexts/session-stream-reducers.test.ts b/packages/app/src/contexts/session-stream-reducers.test.ts
index 4eb3279b3..5a65c597a 100644
--- a/packages/app/src/contexts/session-stream-reducers.test.ts
+++ b/packages/app/src/contexts/session-stream-reducers.test.ts
@@ -67,6 +67,23 @@ function makeStreamReducerEvent(
   };
 }
 
+function makeAssistantItem(text: string, id = `assistant-${text.length}`): StreamItem {
+  return {
+    kind: "assistant_message",
+    id,
+    text,
+    timestamp: new Date(1000),
+  };
+}
+
+function getAssistantTexts(items: StreamItem[]): string[] {
+  return items
+    .filter((item): item is Extract<StreamItem, { kind: "assistant_message" }> => {
+      return item.kind === "assistant_message";
+    })
+    .map((item) => item.text);
+}
+
 const baseTimelineInput: ProcessTimelineResponseInput = {
   payload: {
     agentId: "agent-1",
@@ -263,6 +280,34 @@ describe("processTimelineResponse", () => {
     expect(result.error).toBe(null);
   });
 
+  it("keeps an active assistant head live when an incremental fetch accepts same-turn assistant text", () => {
+    const existingCursor: TimelineCursor = {
+      epoch: "epoch-1",
+      startSeq: 1,
+      endSeq: 2,
+    };
+    const currentHead = [makeAssistantItem("This is a par")];
+
+    const result = processTimelineResponse({
+      ...baseTimelineInput,
+      currentHead,
+      currentCursor: existingCursor,
+      payload: {
+        ...baseTimelineInput.payload,
+        epoch: "epoch-1",
+        entries: [makeTimelineEntry(3, "agraph")],
+      },
+    });
+
+    expect(getAssistantTexts(result.tail)).toEqual([]);
+    expect(getAssistantTexts(result.head)).toEqual(["This is a paragraph"]);
+    expect(result.cursor).toEqual({
+      epoch: "epoch-1",
+      startSeq: 1,
+      endSeq: 3,
+    });
+  });
+
   it("detects gap and emits catch-up side effect", () => {
     const existingCursor: TimelineCursor = {
       epoch: "epoch-1",
@@ -968,6 +1013,59 @@ describe("createAgentStreamReducerQueue", () => {
     expect(scheduler.size).toBe(0);
   });
 
+  it("keeps a live paragraph in one assistant item when canonical fetch interleaves with queued stream chunks", () => {
+    const scheduler = createManualScheduler();
+    let currentTail: StreamItem[] = [];
+    let currentHead: StreamItem[] = [];
+    let currentCursor: TimelineCursor | undefined;
+
+    const queue = createAgentStreamReducerQueue({
+      getSnapshot: () => ({
+        currentTail,
+        currentHead,
+        currentCursor,
+        currentAgent: null,
+      }),
+      commit: (_agentId, result) => {
+        currentTail = result.tail;
+        currentHead = result.head;
+        currentCursor = result.cursor ?? undefined;
+      },
+      handleSideEffects: () => {},
+      scheduleFlush: scheduler.schedule,
+      cancelFlush: scheduler.cancel,
+    });
+
+    queue.enqueue("agent-1", makeStreamReducerEvent(makeTimelineEvent("This is a par"), 2));
+    queue.flushAgent("agent-1");
+
+    const timelineResult = processTimelineResponse({
+      ...baseTimelineInput,
+      currentTail,
+      currentHead,
+      currentCursor,
+      payload: {
+        ...baseTimelineInput.payload,
+        epoch: "epoch-1",
+        entries: [makeTimelineEntry(3, "agraph")],
+      },
+    });
+    currentTail = timelineResult.tail;
+    currentHead = timelineResult.head;
+    currentCursor = timelineResult.cursor ?? undefined;
+
+    queue.enqueue("agent-1", makeStreamReducerEvent(makeTimelineEvent(" continues."), 4));
+    queue.flushAgent("agent-1");
+
+    expect(getAssistantTexts(currentTail)).toEqual([]);
+    expect(getAssistantTexts(currentHead)).toEqual(["This is a paragraph continues."]);
+    expect(currentCursor).toEqual({
+      epoch: "epoch-1",
+      startSeq: 2,
+      endSeq: 4,
+    });
+  });
+
   it("flushes queued events synchronously before disposal", () => {
     const scheduler = createManualScheduler();
     const commits: string[] = [];
diff --git a/packages/app/src/contexts/session-stream-reducers.ts b/packages/app/src/contexts/session-stream-reducers.ts
index e24494790..1617cd7a6 100644
--- a/packages/app/src/contexts/session-stream-reducers.ts
+++ b/packages/app/src/contexts/session-stream-reducers.ts
@@ -3,12 +3,7 @@ import type { AgentLifecycleStatus } from "@server/shared/agent-lifecycle";
 import type { Agent } from "@/stores/session-store";
 import { useSessionStore } from "@/stores/session-store";
 import type { StreamItem } from "@/types/stream";
-import {
-  applyStreamEvent,
-  flushHeadToTail,
-  hydrateStreamState,
-  reduceStreamUpdate,
-} from "@/types/stream";
+import { applyStreamEvent, hydrateStreamState, reduceStreamUpdate } from "@/types/stream";
 import {
   classifySessionTimelineSeq,
   type SessionTimelineSeqDecision,
@@ -206,16 +201,25 @@ function applyTimelineIncrementalPath(args: {
   });
 
   if (acceptedUnits.length > 0) {
-    const baseTail =
-      currentHead.length > 0 ? flushHeadToTail(currentTail, currentHead) : currentTail;
     if (currentHead.length > 0) {
-      nextHead = [];
+      for (const { event, timestamp } of acceptedUnits) {
+        const applied = applyStreamEvent({
+          tail: nextTail,
+          head: nextHead,
+          event,
+          timestamp,
+          source: "canonical",
+        });
+        nextTail = applied.tail;
+        nextHead = applied.head;
+      }
+    } else {
+      nextTail = acceptedUnits.reduce<StreamItem[]>(
+        (state, { event, timestamp }) =>
+          reduceStreamUpdate(state, event, timestamp, { source: "canonical" }),
+        currentTail,
+      );
     }
-    nextTail = acceptedUnits.reduce<StreamItem[]>(
-      (state, { event, timestamp }) =>
-        reduceStreamUpdate(state, event, timestamp, { source: "canonical" }),
-      baseTail,
-    );
   }
 
   if (