diff --git a/packages/server/src/terminal/agent-hooks/agent-hook-installer.ts b/packages/server/src/terminal/agent-hooks/agent-hook-installer.ts
index bb660016c..1d1388a98 100644
--- a/packages/server/src/terminal/agent-hooks/agent-hook-installer.ts
+++ b/packages/server/src/terminal/agent-hooks/agent-hook-installer.ts
@@ -138,7 +138,7 @@ export function buildAgentHookShellCommand<TConfig>(
   event: AgentHookEventDefinition,
 ): string {
   const hookCommand = `"\${PASEO_HOOK_CLI:-paseo}" hooks ${shellToken(provider.id)} ${shellToken(event.event)}`;
-  return `[ -n "$PASEO_TERMINAL_ID" ] && ${hookCommand}`;
+  return `if [ -n "$PASEO_TERMINAL_ID" ]; then ${hookCommand}; fi`;
 }
 
 export function buildAgentHookWindowsCommand<TConfig>(
@@ -146,7 +146,7 @@ export function buildAgentHookWindowsCommand<TConfig>(
   event: AgentHookEventDefinition,
 ): string {
   const hookArgs = `hooks ${windowsToken(provider.id)} ${windowsToken(event.event)}`;
-  return `if defined PASEO_TERMINAL_ID (if defined PASEO_HOOK_CLI ("%PASEO_HOOK_CLI%" ${hookArgs}) else (paseo ${hookArgs}))`;
+  return `if defined PASEO_TERMINAL_ID (if defined PASEO_HOOK_CLI ("%PASEO_HOOK_CLI%" ${hookArgs}) else (paseo ${hookArgs})) else (exit /b 0)`;
 }
 
 function installAgentHookPluginFile(
diff --git a/packages/server/src/terminal/agent-hooks/claude/claude.test.ts b/packages/server/src/terminal/agent-hooks/claude/claude.test.ts
index 3a6dfb40f..488b236cc 100644
--- a/packages/server/src/terminal/agent-hooks/claude/claude.test.ts
+++ b/packages/server/src/terminal/agent-hooks/claude/claude.test.ts
@@ -1,8 +1,10 @@
+import { spawnSync } from "node:child_process";
 import { mkdtempSync, readFileSync, rmSync, writeFileSync } from "node:fs";
 import { tmpdir } from "node:os";
 import { delimiter, dirname, join, resolve } from "node:path";
 import { fileURLToPath } from "node:url";
 import { afterEach, describe, expect, it } from "vitest";
+import { isPlatform } from "../../../test-utils/platform.js";
 import { buildTerminalEnvironment } from "../../terminal.js";
 import { buildAgentHookShellCommand } from "../agent-hook-installer.js";
 import {
@@ -81,7 +83,7 @@ describe("Claude terminal agent hooks", () => {
       );
       expect(paseoCommands).toHaveLength(1);
       expect(paseoCommands[0]).toBe(
-        `[ -n "$PASEO_TERMINAL_ID" ] && "\${PASEO_HOOK_CLI:-paseo}" hooks ${provider.id} ${event.event}`,
+        `if [ -n "$PASEO_TERMINAL_ID" ]; then "\${PASEO_HOOK_CLI:-paseo}" hooks ${provider.id} ${event.event}; fi`,
       );
     }
     expect(registeredAgentHooksAreInstalled({ configDir })).toBe(true);
@@ -146,10 +148,25 @@ describe("Claude terminal agent hooks", () => {
     const command = buildAgentHookShellCommand(provider, provider.events[0]);
 
     expect(command).toBe(
-      '[ -n "$PASEO_TERMINAL_ID" ] && "${PASEO_HOOK_CLI:-paseo}" hooks claude UserPromptSubmit',
+      'if [ -n "$PASEO_TERMINAL_ID" ]; then "${PASEO_HOOK_CLI:-paseo}" hooks claude UserPromptSubmit; fi',
     );
   });
 
+  it.skipIf(isPlatform("win32")).each(AGENT_HOOK_PROVIDERS.claude.events)(
+    "$event hook command exits 0 when PASEO_TERMINAL_ID is unset",
+    (event) => {
+      const provider = AGENT_HOOK_PROVIDERS.claude;
+      const command = buildAgentHookShellCommand(provider, event);
+
+      const result = spawnSync("/bin/sh", ["-c", command], {
+        env: { PATH: process.env.PATH ?? "", PASEO_HOOK_CLI: "paseo" },
+        stdio: "ignore",
+      });
+
+      expect(result.status).toBe(0);
+    },
+  );
+
   it("keeps provider names out of generic CLI and bootstrap integration points", () => {
     const genericFiles = [
       join(repositoryRoot, "packages", "cli", "src", "commands", "hooks.ts"),
diff --git a/packages/server/src/terminal/agent-hooks/codex/codex.test.ts b/packages/server/src/terminal/agent-hooks/codex/codex.test.ts
index 6446d51ae..64e20f69c 100644
--- a/packages/server/src/terminal/agent-hooks/codex/codex.test.ts
+++ b/packages/server/src/terminal/agent-hooks/codex/codex.test.ts
@@ -68,8 +68,8 @@ describe("Codex terminal agent hooks", () => {
     for (const event of codexAgentHookProvider.events) {
       expect(commandHooks(config, event.event)).toEqual([
         {
-          command: `[ -n "$PASEO_TERMINAL_ID" ] && "\${PASEO_HOOK_CLI:-paseo}" hooks codex ${event.event}`,
-          commandWindows: `if defined PASEO_TERMINAL_ID (if defined PASEO_HOOK_CLI ("%PASEO_HOOK_CLI%" hooks codex ${event.event}) else (paseo hooks codex ${event.event}))`,
+          command: `if [ -n "$PASEO_TERMINAL_ID" ]; then "\${PASEO_HOOK_CLI:-paseo}" hooks codex ${event.event}; fi`,
+          commandWindows: `if defined PASEO_TERMINAL_ID (if defined PASEO_HOOK_CLI ("%PASEO_HOOK_CLI%" hooks codex ${event.event}) else (paseo hooks codex ${event.event})) else (exit /b 0)`,
         },
       ]);
     }
@@ -102,7 +102,7 @@ describe("Codex terminal agent hooks", () => {
     const stopCommands = commandHooks(readHooksFile(configDir), "Stop").map((hook) => hook.command);
     expect(stopCommands).toEqual([
       "say codex done",
-      '[ -n "$PASEO_TERMINAL_ID" ] && "${PASEO_HOOK_CLI:-paseo}" hooks codex Stop',
+      'if [ -n "$PASEO_TERMINAL_ID" ]; then "${PASEO_HOOK_CLI:-paseo}" hooks codex Stop; fi',
     ]);
   });