diff --git a/main.ts b/main.ts
index f718322..a1ab887 100644
--- a/main.ts
+++ b/main.ts
@@ -9,6 +9,7 @@ import {simpleGit} from "simple-git";
 import {promisify} from "util";
 import {v4 as uuidv4} from "uuid";
 import {PersistedSession, SessionConfig} from "./types";
+import {isTerminalReady} from "./terminal-utils";
 
 const execAsync = promisify(exec);
 
@@ -31,12 +32,6 @@ function getWorktreeBaseDir(): string {
   return path.join(os.homedir(), "worktrees");
 }
 
-function isTerminalReady(buffer: string, startPos: number = 0): boolean {
-  const searchBuffer = buffer.slice(startPos);
-
-  return searchBuffer.includes("\x1b[?2004h", startPos);
-}
-
 function savePersistedSessions(sessions: PersistedSession[]) {
   (store as any).set("sessions", sessions);
 }
@@ -139,6 +134,7 @@ function spawnMcpPoller(sessionId: string, projectDir: string) {
   const serverMap = new Map<string, any>();
 
   ptyProcess.onData((data) => {
+
     // Accumulate output without displaying it
     outputBuffer += data;
 
@@ -469,6 +465,7 @@ ipcMain.on("create-session", async (event, config: SessionConfig) => {
 // Handle session input
 ipcMain.on("session-input", (_event, sessionId: string, data: string) => {
   const ptyProcess = activePtyProcesses.get(sessionId);
+
   if (ptyProcess) {
     ptyProcess.write(data);
   }
@@ -508,6 +505,7 @@ ipcMain.on("reopen-session", (event, sessionId: string) => {
 // Close session (kill PTY but keep session)
 ipcMain.on("close-session", (_event, sessionId: string) => {
   const ptyProcess = activePtyProcesses.get(sessionId);
+
   if (ptyProcess) {
     ptyProcess.kill();
     activePtyProcesses.delete(sessionId);
diff --git a/renderer.ts b/renderer.ts
index 0c721f7..0ff7359 100644
--- a/renderer.ts
+++ b/renderer.ts
@@ -2,6 +2,7 @@ import {FitAddon} from "@xterm/addon-fit";
 import {ipcRenderer} from "electron";
 import {Terminal} from "xterm";
 import {PersistedSession, SessionConfig} from "./types";
+import {isClaudeSessionReady} from "./terminal-utils";
 
 interface Session {
   id: string;
@@ -12,7 +13,6 @@ interface Session {
   config: SessionConfig;
   worktreePath: string;
   hasActivePty: boolean;
-  hasUnreadActivity: boolean;
 }
 
 interface McpServer {
@@ -272,7 +272,6 @@ function addSession(persistedSession: PersistedSession, hasActivePty: boolean) {
     config: persistedSession.config,
     worktreePath: persistedSession.worktreePath,
     hasActivePty,
-    hasUnreadActivity: false,
   };
 
   sessions.set(persistedSession.id, session);
@@ -481,8 +480,6 @@ function markSessionAsUnread(sessionId: string) {
   const session = sessions.get(sessionId);
   if (!session) return;
 
-  session.hasUnreadActivity = true;
-
   // Add unread indicator to tab
   const tab = document.getElementById(`tab-${sessionId}`);
   if (tab) {
@@ -494,8 +491,6 @@ function clearUnreadStatus(sessionId: string) {
   const session = sessions.get(sessionId);
   if (!session) return;
 
-  session.hasUnreadActivity = false;
-
   // Remove unread indicator from tab
   const tab = document.getElementById(`tab-${sessionId}`);
   if (tab) {
@@ -537,13 +532,6 @@ function switchToSession(sessionId: string) {
     // Clear unread status when switching to this session
     clearUnreadStatus(sessionId);
 
-    // Clear any pending idle timer for this session (Bug 1 fix)
-    const existingTimer = sessionIdleTimers.get(sessionId);
-    if (existingTimer) {
-      clearTimeout(existingTimer);
-      sessionIdleTimers.delete(sessionId);
-    }
-
     // Focus and resize
     session.terminal.focus();
     // Dispatch resize event to trigger terminal resize
@@ -575,13 +563,6 @@ function closeSession(sessionId: string) {
   // Update UI indicator
   updateSessionState(sessionId, false);
 
-  // Clean up idle timer (Bug 2 fix)
-  const existingTimer = sessionIdleTimers.get(sessionId);
-  if (existingTimer) {
-    clearTimeout(existingTimer);
-    sessionIdleTimers.delete(sessionId);
-  }
-
   // Close PTY in main process
   ipcRenderer.send("close-session", sessionId);
 
@@ -623,13 +604,6 @@ function deleteSession(sessionId: string) {
   // Remove from sessions map
   sessions.delete(sessionId);
 
-  // Clean up idle timer (Bug 2 fix)
-  const existingTimer = sessionIdleTimers.get(sessionId);
-  if (existingTimer) {
-    clearTimeout(existingTimer);
-    sessionIdleTimers.delete(sessionId);
-  }
-
   // Delete in main process (handles worktree removal)
   ipcRenderer.send("delete-session", sessionId);
 
@@ -649,10 +623,6 @@ function deleteSession(sessionId: string) {
   }
 }
 
-// Track idle timers per session to detect when output stops (Claude is done)
-const sessionIdleTimers = new Map<string, NodeJS.Timeout>();
-const IDLE_DELAY_MS = 500; // 0.5 seconds of no output = Claude is done
-
 // Handle session output
 ipcRenderer.on("session-output", (_event, sessionId: string, data: string) => {
   const session = sessions.get(sessionId);
@@ -664,27 +634,10 @@ ipcRenderer.on("session-output", (_event, sessionId: string, data: string) => {
     session.terminal.write(filteredData);
 
     // Only mark as unread if this is not the active session
-    if (activeSessionId !== sessionId && session.hasActivePty && !session.hasUnreadActivity) {
-      // Only track substantive output (ignore cursor movements, keepalives, etc)
-      // Look for actual text content or common escape sequences that indicate real output
-      const hasSubstantiveOutput = /[a-zA-Z0-9]/.test(filteredData) ||
-                                    filteredData.includes('\n') ||
-                                    filteredData.includes('\r');
-
-      if (hasSubstantiveOutput) {
-        // Clear any existing idle timer
-        const existingTimer = sessionIdleTimers.get(sessionId);
-        if (existingTimer) {
-          clearTimeout(existingTimer);
-        }
-
-        // Set a new timer - if no output for IDLE_DELAY_MS, mark as unread
-        const timer = setTimeout(() => {
-          markSessionAsUnread(sessionId);
-          sessionIdleTimers.delete(sessionId);
-        }, IDLE_DELAY_MS);
-
-        sessionIdleTimers.set(sessionId, timer);
+    if (activeSessionId !== sessionId && session.hasActivePty) {
+      // Check if Claude session is ready for input
+      if (isClaudeSessionReady(filteredData)) {
+        markSessionAsUnread(sessionId);
       }
     }
   }
diff --git a/terminal-utils.ts b/terminal-utils.ts
new file mode 100644
index 0000000..324a55b
--- /dev/null
+++ b/terminal-utils.ts
@@ -0,0 +1,20 @@
+// Terminal escape sequences used for detecting terminal state
+
+// Bracketed paste mode enable - indicates terminal is ready for input
+export const BRACKETED_PASTE_MODE_ENABLE = "\x1b[?2004h";
+
+// Pattern that indicates Claude interactive session is done and waiting for input
+// Looks for: >\r\n (empty prompt with no space, no suggestion text)
+const CLAUDE_READY_PROMPT_PATTERN = />\r\n/;
+
+// Check if a normal shell terminal is ready for input
+// Used during terminal initialization in main.ts
+export function isTerminalReady(buffer: string, startPos: number = 0): boolean {
+  return buffer.includes(BRACKETED_PASTE_MODE_ENABLE, startPos);
+}
+
+// Check if Claude interactive session is done and ready for input
+// Used for unread indicator detection in renderer.ts
+export function isClaudeSessionReady(buffer: string): boolean {
+  return CLAUDE_READY_PROMPT_PATTERN.test(buffer);
+}