diff --git a/package-lock.json b/package-lock.json
index 76e924484..ed1ad2394 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -109,134 +109,6 @@
         "zod": "^3.25.76 || ^4.1.8"
       }
     },
-    "node_modules/@anthropic-ai/claude-agent-sdk": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk/-/claude-agent-sdk-0.3.181.tgz",
-      "integrity": "sha512-xT2pXqqvCSmTwO5zctIxL4dO9vX7+rKeybvLBuEvUxub8sDyScK8s1dVstxL4ZtHQzOIDUng43qEq/kefNp+aA==",
-      "license": "SEE LICENSE IN README.md",
-      "engines": {
-        "node": ">=18.0.0"
-      },
-      "optionalDependencies": {
-        "@anthropic-ai/claude-agent-sdk-darwin-arm64": "0.3.181",
-        "@anthropic-ai/claude-agent-sdk-darwin-x64": "0.3.181",
-        "@anthropic-ai/claude-agent-sdk-linux-arm64": "0.3.181",
-        "@anthropic-ai/claude-agent-sdk-linux-arm64-musl": "0.3.181",
-        "@anthropic-ai/claude-agent-sdk-linux-x64": "0.3.181",
-        "@anthropic-ai/claude-agent-sdk-linux-x64-musl": "0.3.181",
-        "@anthropic-ai/claude-agent-sdk-win32-arm64": "0.3.181",
-        "@anthropic-ai/claude-agent-sdk-win32-x64": "0.3.181"
-      },
-      "peerDependencies": {
-        "@anthropic-ai/sdk": ">=0.93.0",
-        "@modelcontextprotocol/sdk": "^1.29.0",
-        "zod": "^4.0.0"
-      }
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-darwin-arm64": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-darwin-arm64/-/claude-agent-sdk-darwin-arm64-0.3.181.tgz",
-      "integrity": "sha512-krU5aV651tfv0IeLXo2m+YYduOdirQ+/ptv4IVXivsrjtBXHrtTTLrOaBEFuRQSLqCAMaTH3cITR+mj6ij4kMA==",
-      "cpu": [
-        "arm64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "darwin"
-      ]
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-darwin-x64": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-darwin-x64/-/claude-agent-sdk-darwin-x64-0.3.181.tgz",
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-        "x64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "darwin"
-      ]
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-linux-arm64": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-arm64/-/claude-agent-sdk-linux-arm64-0.3.181.tgz",
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-      "cpu": [
-        "arm64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "linux"
-      ]
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-linux-arm64-musl": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-arm64-musl/-/claude-agent-sdk-linux-arm64-musl-0.3.181.tgz",
-      "integrity": "sha512-lI39OgTCqKAqTtNF3a6+z4ToS2QKLWQw0oZGSGCMb2k6MrPB2OqyN/JSH6nvKfxLpaQmVTowwpyR4JInHMzobw==",
-      "cpu": [
-        "arm64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "linux"
-      ]
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-linux-x64": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-x64/-/claude-agent-sdk-linux-x64-0.3.181.tgz",
-      "integrity": "sha512-KKYcN2PKHPUOPKKWsPY1bEEkeVMiOmTRpzIleGlCPsXJLS/QnN6RgNOHIrapRmh0z9uFl24KCP5X1OUMWZqu4Q==",
-      "cpu": [
-        "x64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "linux"
-      ]
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-linux-x64-musl": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-x64-musl/-/claude-agent-sdk-linux-x64-musl-0.3.181.tgz",
-      "integrity": "sha512-FNf6QhAZ8/7q9MfFTCEfc0nA6oOSrEyKq3Xv2Jt4iSEViXYuIC25shk4T4EvU8qoLtbS51NCxCdpD7b0zCHvFQ==",
-      "cpu": [
-        "x64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "linux"
-      ]
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-win32-arm64": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-win32-arm64/-/claude-agent-sdk-win32-arm64-0.3.181.tgz",
-      "integrity": "sha512-7plhWEB9/ExlzTMY9SzUy6zSoCrMP4KFBJwfmkt0plxwv8lFJqX/tEH/r4QDQxrMQnR+d6RcbgPH6g3hnu3NMQ==",
-      "cpu": [
-        "arm64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "win32"
-      ]
-    },
-    "node_modules/@anthropic-ai/claude-agent-sdk-win32-x64": {
-      "version": "0.3.181",
-      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-win32-x64/-/claude-agent-sdk-win32-x64-0.3.181.tgz",
-      "integrity": "sha512-CQKaMv5tYBUxtFe1XG2qhnNJrmChXf+nhi5FhbE3GElWeNaXKMOTYqflii3zOT3yhqnrbh7fz1gzhOFwALtCeA==",
-      "cpu": [
-        "x64"
-      ],
-      "license": "SEE LICENSE IN LICENSE.md",
-      "optional": true,
-      "os": [
-        "win32"
-      ]
-    },
     "node_modules/@anthropic-ai/sdk": {
       "version": "0.104.2",
       "resolved": "https://registry.npmjs.org/@anthropic-ai/sdk/-/sdk-0.104.2.tgz",
@@ -38147,7 +38019,7 @@
       "version": "0.1.102-beta.1",
       "dependencies": {
         "@agentclientprotocol/sdk": "^0.17.1",
-        "@anthropic-ai/claude-agent-sdk": "^0.3.181",
+        "@anthropic-ai/claude-agent-sdk": "^0.3.195",
         "@anthropic-ai/sdk": "^0.104.2",
         "@getpaseo/client": "0.1.102-beta.1",
         "@getpaseo/highlight": "0.1.102-beta.1",
@@ -38195,6 +38067,134 @@
         "vitest": "^4.1.6"
       }
     },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk/-/claude-agent-sdk-0.3.195.tgz",
+      "integrity": "sha512-FVmXu9pvOMbuBKWrF8YsYQdQ/upOpv5rS8lFAnFO5jbyXT/2hN7kEPd2vd2GJpaMvNcO/KptyQUK5AxjjTz3+w==",
+      "license": "SEE LICENSE IN README.md",
+      "engines": {
+        "node": ">=18.0.0"
+      },
+      "optionalDependencies": {
+        "@anthropic-ai/claude-agent-sdk-darwin-arm64": "0.3.195",
+        "@anthropic-ai/claude-agent-sdk-darwin-x64": "0.3.195",
+        "@anthropic-ai/claude-agent-sdk-linux-arm64": "0.3.195",
+        "@anthropic-ai/claude-agent-sdk-linux-arm64-musl": "0.3.195",
+        "@anthropic-ai/claude-agent-sdk-linux-x64": "0.3.195",
+        "@anthropic-ai/claude-agent-sdk-linux-x64-musl": "0.3.195",
+        "@anthropic-ai/claude-agent-sdk-win32-arm64": "0.3.195",
+        "@anthropic-ai/claude-agent-sdk-win32-x64": "0.3.195"
+      },
+      "peerDependencies": {
+        "@anthropic-ai/sdk": ">=0.93.0",
+        "@modelcontextprotocol/sdk": "^1.29.0",
+        "zod": "^4.0.0"
+      }
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-darwin-arm64": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-darwin-arm64/-/claude-agent-sdk-darwin-arm64-0.3.195.tgz",
+      "integrity": "sha512-WIMM/8HRCLsTDHFTIwQvvE8WCA/oaMJtdQxsP7iNyfzIGwXbuOyU95V8vYIhZfaO2yaSpbBRncunq4CtR5H4ng==",
+      "cpu": [
+        "arm64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "darwin"
+      ]
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-darwin-x64": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-darwin-x64/-/claude-agent-sdk-darwin-x64-0.3.195.tgz",
+      "integrity": "sha512-RY7DB+4LXosE0MJ+XELmakfPrDN1YX4lkk9CTDm28jGCVcESRz9kAEqbyaiC48dZcmN9V1NCLutzINGdcr1TBg==",
+      "cpu": [
+        "x64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "darwin"
+      ]
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-linux-arm64": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-arm64/-/claude-agent-sdk-linux-arm64-0.3.195.tgz",
+      "integrity": "sha512-JuIq5Fnz/F1snl0aqi1gcuRZqPWoPNrL9dJ0DuievCxKkO8hnEz/Mmn5Zos7x1X8HE//ZnEvmQXoEQEZXonJew==",
+      "cpu": [
+        "arm64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "linux"
+      ]
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-linux-arm64-musl": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-arm64-musl/-/claude-agent-sdk-linux-arm64-musl-0.3.195.tgz",
+      "integrity": "sha512-ZmyBA/AFzhgutcxb7dbhCm6GTjJytwNYXTxJoKE2B3A409WCYccjMqeji6vCMNxyyfylglGo5D8dVMIxW9aoug==",
+      "cpu": [
+        "arm64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "linux"
+      ]
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-linux-x64": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-x64/-/claude-agent-sdk-linux-x64-0.3.195.tgz",
+      "integrity": "sha512-s1lNi1cL93luoqsItH+fNO4KpIhdkvnVhWGGQUQ/8ftwa2gfmcIQnOg1hG8Ks+KzeD3UUQ8L9YEVHVADnFI/9A==",
+      "cpu": [
+        "x64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "linux"
+      ]
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-linux-x64-musl": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-linux-x64-musl/-/claude-agent-sdk-linux-x64-musl-0.3.195.tgz",
+      "integrity": "sha512-nf8Q/LauB+ZOC6QDjxNhbsvwUtYjKYnaWJLTYFwhkmsLujePnety1AtT/1ubaUoq5AM1j297DhMlYTasa79OUA==",
+      "cpu": [
+        "x64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "linux"
+      ]
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-win32-arm64": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-win32-arm64/-/claude-agent-sdk-win32-arm64-0.3.195.tgz",
+      "integrity": "sha512-hbkDE+xPIZzRWm+D+BKrH9uJH6USIZdDIlsyrIlGi3JFHoieYoA1vdUNyldSS9+F3ZqQtfPjr2Qy08IVB6akYA==",
+      "cpu": [
+        "arm64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "win32"
+      ]
+    },
+    "packages/server/node_modules/@anthropic-ai/claude-agent-sdk-win32-x64": {
+      "version": "0.3.195",
+      "resolved": "https://registry.npmjs.org/@anthropic-ai/claude-agent-sdk-win32-x64/-/claude-agent-sdk-win32-x64-0.3.195.tgz",
+      "integrity": "sha512-av0piEB3X1Dzhpr8A+DqHVZ9y8s1jpn8enzwX0TKKUPBn5IqLTWC7wD6v66aoUgu4f+g4ThZirmDZA6shyPEZQ==",
+      "cpu": [
+        "x64"
+      ],
+      "license": "SEE LICENSE IN LICENSE.md",
+      "optional": true,
+      "os": [
+        "win32"
+      ]
+    },
     "packages/server/node_modules/@isaacs/ttlcache": {
       "version": "2.1.4",
       "resolved": "https://registry.npmjs.org/@isaacs/ttlcache/-/ttlcache-2.1.4.tgz",
diff --git a/packages/server/package.json b/packages/server/package.json
index 61fcb7bcc..748a94446 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -63,7 +63,7 @@
   },
   "dependencies": {
     "@agentclientprotocol/sdk": "^0.17.1",
-    "@anthropic-ai/claude-agent-sdk": "^0.3.181",
+    "@anthropic-ai/claude-agent-sdk": "^0.3.195",
     "@anthropic-ai/sdk": "^0.104.2",
     "@getpaseo/client": "0.1.102-beta.1",
     "@getpaseo/highlight": "0.1.102-beta.1",
diff --git a/packages/server/src/server/agent/providers/claude/agent.sub-agent-sidechain.test.ts b/packages/server/src/server/agent/providers/claude/agent.sub-agent-sidechain.test.ts
index ca87fee3e..a7b8e0fe7 100644
--- a/packages/server/src/server/agent/providers/claude/agent.sub-agent-sidechain.test.ts
+++ b/packages/server/src/server/agent/providers/claude/agent.sub-agent-sidechain.test.ts
@@ -211,6 +211,20 @@ describe("ClaudeAgentSession sub-agent sidechain updates", () => {
           parent_tool_use_id: "task-call-1",
           elapsed_time_seconds: 1,
         },
+        {
+          type: "assistant",
+          parent_tool_use_id: "task-call-1",
+          message: {
+            id: "subagent-message-1",
+            role: "assistant",
+            content: [
+              {
+                type: "text",
+                text: "Sub-agent narration belongs inside the Task row, not the parent transcript.",
+              },
+            ],
+          },
+        },
         {
           type: "assistant",
           parent_tool_use_id: null,
@@ -295,6 +309,46 @@ describe("ClaudeAgentSession sub-agent sidechain updates", () => {
     expect(projectedTaskCalls).toHaveLength(1);
   });
 
+  test("keeps sidechain assistant text out of the parent transcript", async () => {
+    const session = await new ClaudeAgentClient({
+      logger,
+      queryFactory,
+      resolveBinary: async () => "/test/claude/bin",
+    }).createSession({
+      provider: "claude",
+      cwd: process.cwd(),
+    });
+
+    const events = await collectUntilTerminal(streamSession(session, "delegate work"));
+    await session.close();
+
+    const visibleAssistantText = events
+      .flatMap((event) =>
+        event.type === "timeline" && event.item.type === "assistant_message"
+          ? [event.item.text]
+          : [],
+      )
+      .join("");
+
+    expect(visibleAssistantText).not.toContain("Sub-agent narration");
+
+    const latestSubAgentUpdate = events
+      .filter(
+        (event): event is Extract<AgentStreamEvent, { type: "timeline" }> =>
+          event.type === "timeline" &&
+          event.item.type === "tool_call" &&
+          event.item.callId === "task-call-1" &&
+          event.item.detail.type === "sub_agent",
+      )
+      .map((event) => event.item)
+      .at(-1);
+
+    expect(latestSubAgentUpdate?.detail).toMatchObject({
+      type: "sub_agent",
+      log: expect.stringContaining("[Read] README.md"),
+    });
+  });
+
   test("tails sub-agent actions instead of dropping latest entries at cap", async () => {
     queryFactory.mockImplementation(() => buildQueryMock(buildTailScenarioEvents(205)));
 
diff --git a/packages/server/src/server/agent/providers/claude/agent.ts b/packages/server/src/server/agent/providers/claude/agent.ts
index 7761d8ea0..62af2b0fa 100644
--- a/packages/server/src/server/agent/providers/claude/agent.ts
+++ b/packages/server/src/server/agent/providers/claude/agent.ts
@@ -1731,6 +1731,14 @@ function isClaudeSubagentToolName(name: string | undefined): boolean {
   return name === "Task" || name === "Agent";
 }
 
+function readClaudeParentToolUseId(message: SDKMessage): string | null {
+  if (!("parent_tool_use_id" in message)) {
+    return null;
+  }
+  const parentToolUseId = (message as { parent_tool_use_id?: unknown }).parent_tool_use_id;
+  return typeof parentToolUseId === "string" && parentToolUseId.length > 0 ? parentToolUseId : null;
+}
+
 class ClaudeContextUsageState {
   private contextWindowMaxTokens: number | undefined;
   private streamRequestInputTokens: number | undefined;
@@ -3495,20 +3503,22 @@ class ClaudeAgentSession implements AgentSession {
       suppressAssistantText: true,
       suppressReasoning: true,
     });
-    const assistantTimelineEvents = this.timelineAssembler
-      .consume({
-        message,
-        runId: turnId,
-        messageIdHint,
-      })
-      .map(
-        (item) =>
-          ({
-            type: "timeline",
-            item,
-            provider: "claude",
-          }) satisfies AgentStreamEvent,
-      );
+    const assistantTimelineEvents = readClaudeParentToolUseId(message)
+      ? []
+      : this.timelineAssembler
+          .consume({
+            message,
+            runId: turnId,
+            messageIdHint,
+          })
+          .map(
+            (item) =>
+              ({
+                type: "timeline",
+                item,
+                provider: "claude",
+              }) satisfies AgentStreamEvent,
+          );
 
     return [...messageEvents, ...assistantTimelineEvents];
   }
@@ -3582,10 +3592,7 @@ class ClaudeAgentSession implements AgentSession {
       suppressReasoning?: boolean;
     },
   ): AgentStreamEvent[] {
-    const parentToolUseId =
-      "parent_tool_use_id" in message
-        ? (message as { parent_tool_use_id: string | null }).parent_tool_use_id
-        : null;
+    const parentToolUseId = readClaudeParentToolUseId(message);
     if (parentToolUseId) {
       return this.sidechainTracker.handleMessage(message, parentToolUseId);
     }