diff --git a/src/constants/toolLimits.ts b/src/constants/toolLimits.ts
index f6ba0d18b..c8b04fc99 100644
--- a/src/constants/toolLimits.ts
+++ b/src/constants/toolLimits.ts
@@ -7,8 +7,9 @@ export const BASH_MAX_TOTAL_BYTES = 16 * 1024; // 16KB total output to show agen
 export const BASH_MAX_FILE_BYTES = 100 * 1024; // 100KB max to save to temp file
 
 // truncate policy limits (IPC - generous for UI features like code review)
-export const BASH_TRUNCATE_HARD_MAX_LINES = 10_000; // 10K lines
+// No line limit for IPC - only byte limit applies
 export const BASH_TRUNCATE_MAX_TOTAL_BYTES = 1024 * 1024; // 1MB total output
+export const BASH_TRUNCATE_MAX_FILE_BYTES = 1024 * 1024; // 1MB file limit (same as total for IPC)
 
 // Shared limits
 export const BASH_MAX_LINE_BYTES = 1024; // 1KB per line (shared across both policies)
diff --git a/src/services/tools/bash.test.ts b/src/services/tools/bash.test.ts
index f8884fbb1..e0fd07a98 100644
--- a/src/services/tools/bash.test.ts
+++ b/src/services/tools/bash.test.ts
@@ -166,7 +166,8 @@ describe("bash tool", () => {
     });
 
     const args: BashToolArgs = {
-      script: "for i in {1..11000}; do echo line$i; done", // Exceeds 10K line hard cap for truncate policy
+      // Generate ~1.5MB of output (1700 lines * 900 bytes) to exceed 1MB byte limit
+      script: 'perl -e \'for (1..1700) { print "A" x 900 . "\\n" }\'',
       timeout_secs: 5,
     };
 
@@ -177,15 +178,14 @@ describe("bash tool", () => {
     expect(result.truncated).toBeDefined();
     if (result.truncated) {
       expect(result.truncated.reason).toContain("exceeded");
-      // Should collect all lines up to when truncation was triggered
-      expect(result.truncated.totalLines).toBeGreaterThan(10000);
+      // Should collect lines up to ~1MB (around 1150-1170 lines with 900 bytes each)
+      expect(result.truncated.totalLines).toBeGreaterThan(1000);
+      expect(result.truncated.totalLines).toBeLessThan(1300);
     }
 
-    // Should contain collected lines
-    expect(result.output).toContain("line1");
-    expect(result.output).toContain("line10000");
-    // Might or might not contain line 11000 depending on when truncation triggers
-    expect(result.output).toContain("line11000");
+    // Should contain output that's around 1MB
+    expect(result.output?.length).toBeGreaterThan(1000000);
+    expect(result.output?.length).toBeLessThan(1100000);
 
     // Should NOT create temp file with truncate policy
     const files = fs.readdirSync(tempDir.path);
diff --git a/src/services/tools/bash.ts b/src/services/tools/bash.ts
index 91b170225..7096e4884 100644
--- a/src/services/tools/bash.ts
+++ b/src/services/tools/bash.ts
@@ -10,8 +10,8 @@ import {
   BASH_MAX_LINE_BYTES,
   BASH_MAX_TOTAL_BYTES,
   BASH_MAX_FILE_BYTES,
-  BASH_TRUNCATE_HARD_MAX_LINES,
   BASH_TRUNCATE_MAX_TOTAL_BYTES,
+  BASH_TRUNCATE_MAX_FILE_BYTES,
 } from "@/constants/toolLimits";
 
 import type { BashToolResult } from "@/types/tools";
@@ -62,13 +62,14 @@ class DisposableProcess implements Disposable {
  */
 export const createBashTool: ToolFactory = (config: ToolConfiguration) => {
   // Select limits based on overflow policy
-  // truncate = IPC calls (generous limits for UI features)
+  // truncate = IPC calls (generous limits for UI features, no line limit)
   // tmpfile = AI agent calls (conservative limits for LLM context)
   const overflowPolicy = config.overflow_policy ?? "tmpfile";
   const maxTotalBytes =
     overflowPolicy === "truncate" ? BASH_TRUNCATE_MAX_TOTAL_BYTES : BASH_MAX_TOTAL_BYTES;
-  const maxLines =
-    overflowPolicy === "truncate" ? BASH_TRUNCATE_HARD_MAX_LINES : BASH_HARD_MAX_LINES;
+  const maxFileBytes =
+    overflowPolicy === "truncate" ? BASH_TRUNCATE_MAX_FILE_BYTES : BASH_MAX_FILE_BYTES;
+  const maxLines = overflowPolicy === "truncate" ? Infinity : BASH_HARD_MAX_LINES;
 
   return tool({
     description: TOOL_DEFINITIONS.bash.description + "\nRuns in " + config.cwd + " - no cd needed",
@@ -248,9 +249,9 @@ export const createBashTool: ToolFactory = (config: ToolConfiguration) => {
             totalBytesAccumulated += lineBytes + 1; // +1 for newline
 
             // Check file limit first (hard stop)
-            if (totalBytesAccumulated > BASH_MAX_FILE_BYTES) {
+            if (totalBytesAccumulated > maxFileBytes) {
               triggerFileTruncation(
-                `Total output exceeded file preservation limit: ${totalBytesAccumulated} bytes > ${BASH_MAX_FILE_BYTES} bytes (at line ${lines.length})`
+                `Total output exceeded file preservation limit: ${totalBytesAccumulated} bytes > ${maxFileBytes} bytes (at line ${lines.length})`
               );
               return;
             }
@@ -290,9 +291,9 @@ export const createBashTool: ToolFactory = (config: ToolConfiguration) => {
             totalBytesAccumulated += lineBytes + 1; // +1 for newline
 
             // Check file limit first (hard stop)
-            if (totalBytesAccumulated > BASH_MAX_FILE_BYTES) {
+            if (totalBytesAccumulated > maxFileBytes) {
               triggerFileTruncation(
-                `Total output exceeded file preservation limit: ${totalBytesAccumulated} bytes > ${BASH_MAX_FILE_BYTES} bytes (at line ${lines.length})`
+                `Total output exceeded file preservation limit: ${totalBytesAccumulated} bytes > ${maxFileBytes} bytes (at line ${lines.length})`
               );
               return;
             }