diff --git a/src/browser/components/AIView.tsx b/src/browser/components/AIView.tsx
index 53b0df58d4..42feb37dde 100644
--- a/src/browser/components/AIView.tsx
+++ b/src/browser/components/AIView.tsx
@@ -1,4 +1,12 @@
-import React, { useState, useCallback, useEffect, useLayoutEffect, useRef } from "react";
+import React, {
+  useState,
+  useCallback,
+  useEffect,
+  useLayoutEffect,
+  useRef,
+  useDeferredValue,
+  useMemo,
+} from "react";
 import { cn } from "@/common/lib/utils";
 import { MessageRenderer } from "./Messages/MessageRenderer";
 import { InterruptedBarrier } from "./Messages/ChatBarrier/InterruptedBarrier";
@@ -156,6 +164,13 @@ const AIViewInner: React.FC<AIViewProps> = ({
   // Extract state from workspace state
   const { messages, canInterrupt, isCompacting, loading, currentModel } = workspaceState;
 
+  // Merge consecutive identical stream errors.
+  // Use useDeferredValue to allow React to defer the heavy message list rendering
+  // during rapid updates (streaming), keeping the UI responsive.
+  // Must be defined before any early returns to satisfy React Hooks rules.
+  const mergedMessages = useMemo(() => mergeConsecutiveStreamErrors(messages), [messages]);
+  const deferredMessages = useDeferredValue(mergedMessages);
+
   // Get active stream message ID for token counting
   const activeStreamMessageId = aggregator?.getActiveStreamMessageId();
 
@@ -418,9 +433,6 @@ const AIViewInner: React.FC<AIViewProps> = ({
   // If user pressed the interrupt key, autoRetry stays false until they manually retry.
   // This makes state transitions explicit and predictable.
 
-  // Merge consecutive identical stream errors
-  const mergedMessages = mergeConsecutiveStreamErrors(messages);
-
   // When editing, find the cutoff point
   const editCutoffHistoryId = editingMessage
     ? mergedMessages.find(
@@ -502,9 +514,9 @@ const AIViewInner: React.FC<AIViewProps> = ({
           >
             <div
               ref={innerRef}
-              className={cn("max-w-4xl mx-auto", mergedMessages.length === 0 && "h-full")}
+              className={cn("max-w-4xl mx-auto", deferredMessages.length === 0 && "h-full")}
             >
-              {mergedMessages.length === 0 ? (
+              {deferredMessages.length === 0 ? (
                 <div className="text-placeholder flex h-full flex-1 flex-col items-center justify-center text-center [&_h3]:m-0 [&_h3]:mb-2.5 [&_h3]:text-base [&_h3]:font-medium [&_p]:m-0 [&_p]:text-[13px]">
                   <h3>No Messages Yet</h3>
                   <p>Send a message below to begin</p>
@@ -520,7 +532,7 @@ const AIViewInner: React.FC<AIViewProps> = ({
                 </div>
               ) : (
                 <>
-                  {mergedMessages.map((msg) => {
+                  {deferredMessages.map((msg) => {
                     const isAtCutoff =
                       editCutoffHistoryId !== undefined &&
                       msg.type !== "history-hidden" &&
diff --git a/src/browser/components/Messages/ReasoningMessage.tsx b/src/browser/components/Messages/ReasoningMessage.tsx
index d8d2a63771..b33b66c759 100644
--- a/src/browser/components/Messages/ReasoningMessage.tsx
+++ b/src/browser/components/Messages/ReasoningMessage.tsx
@@ -1,4 +1,4 @@
-import React, { useState, useEffect } from "react";
+import React, { useState, useEffect, useRef, useLayoutEffect } from "react";
 import type { DisplayedMessage } from "@/common/types/message";
 import { MarkdownRenderer } from "./MarkdownRenderer";
 import { TypewriterMarkdown } from "./TypewriterMarkdown";
@@ -15,6 +15,9 @@ const REASONING_FONT_CLASSES = "font-primary text-[12px] leading-[18px]";
 
 export const ReasoningMessage: React.FC<ReasoningMessageProps> = ({ message, className }) => {
   const [isExpanded, setIsExpanded] = useState(true);
+  // Track the height when expanded to reserve space during collapse transitions
+  const [expandedHeight, setExpandedHeight] = useState<number | null>(null);
+  const contentRef = useRef<HTMLDivElement>(null);
 
   const content = message.content;
   const isStreaming = message.isStreaming;
@@ -26,6 +29,14 @@ export const ReasoningMessage: React.FC<ReasoningMessageProps> = ({ message, cla
   const isSingleLineTrace = !isStreaming && hasContent && !hasAdditionalLines;
   const isCollapsible = !isStreaming && hasContent && hasAdditionalLines;
   const showEllipsis = isCollapsible && !isExpanded;
+  const showExpandedContent = isExpanded && !isSingleLineTrace;
+
+  // Capture expanded height before collapsing to enable smooth transitions
+  useLayoutEffect(() => {
+    if (contentRef.current && isExpanded && !isSingleLineTrace) {
+      setExpandedHeight(contentRef.current.scrollHeight);
+    }
+  }, [isExpanded, isSingleLineTrace, content]);
 
   // Auto-collapse when streaming ends
   useEffect(() => {
@@ -118,16 +129,23 @@ export const ReasoningMessage: React.FC<ReasoningMessageProps> = ({ message, cla
         )}
       </div>
 
-      {isExpanded && !isSingleLineTrace && (
-        <div
-          className={cn(
-            REASONING_FONT_CLASSES,
-            "italic opacity-85 [&_p]:mt-0 [&_p]:mb-1 [&_p:last-child]:mb-0"
-          )}
-        >
-          {renderContent()}
-        </div>
-      )}
+      {/* Always render the content container to prevent layout shifts.
+          Use CSS transitions for smooth height changes instead of conditional rendering. */}
+      <div
+        ref={contentRef}
+        className={cn(
+          REASONING_FONT_CLASSES,
+          "italic opacity-85 [&_p]:mt-0 [&_p]:mb-1 [&_p:last-child]:mb-0",
+          "overflow-hidden transition-[height,opacity] duration-200 ease-in-out"
+        )}
+        style={{
+          height: showExpandedContent ? (expandedHeight ?? "auto") : 0,
+          opacity: showExpandedContent ? 1 : 0,
+        }}
+        aria-hidden={!showExpandedContent}
+      >
+        {renderContent()}
+      </div>
     </div>
   );
 };