diff --git a/packages/coding-agent/README.md b/packages/coding-agent/README.md
index 76c625ba..60a2d71c 100644
--- a/packages/coding-agent/README.md
+++ b/packages/coding-agent/README.md
@@ -151,6 +151,8 @@ return config
 
 **Windows Terminal:** Does not support the Kitty keyboard protocol. Shift+Enter cannot be distinguished from Enter. Use Ctrl+Enter for multi-line input instead. All other keybindings work correctly.
 
+**IntelliJ IDEA (Integrated Terminal):** The built-in terminal has limited escape sequence support. If you experience cursor visibility issues, set `PI_NO_HARDWARE_CURSOR=1` before running pi. Note that Shift+Enter cannot be distinguished from Enter in IntelliJ's terminal. Consider using a dedicated terminal emulator for the best experience.
+
 ### API Keys & OAuth
 
 **Option 1: Auth file** (recommended)
diff --git a/packages/tui/CHANGELOG.md b/packages/tui/CHANGELOG.md
index 456b6c9d..9730dd2d 100644
--- a/packages/tui/CHANGELOG.md
+++ b/packages/tui/CHANGELOG.md
@@ -2,6 +2,10 @@
 
 ## [Unreleased]
 
+### Added
+
+- `PI_NO_HARDWARE_CURSOR=1` environment variable to disable hardware cursor positioning for terminals with limited escape sequence support (e.g., IntelliJ IDEA's built-in terminal)
+
 ## [0.47.0] - 2026-01-16
 
 ### Breaking Changes
diff --git a/packages/tui/src/tui.ts b/packages/tui/src/tui.ts
index 0f550761..d708661f 100644
--- a/packages/tui/src/tui.ts
+++ b/packages/tui/src/tui.ts
@@ -981,6 +981,12 @@ export class TUI extends Container {
 	 * @param totalLines Total number of rendered lines
 	 */
 	private positionHardwareCursor(cursorPos: { row: number; col: number } | null, totalLines: number): void {
+		// PI_NO_HARDWARE_CURSOR=1 disables hardware cursor for terminals that don't handle it well
+		if (process.env.PI_NO_HARDWARE_CURSOR === "1") {
+			this.terminal.hideCursor();
+			return;
+		}
+
 		if (!cursorPos || totalLines <= 0) {
 			this.terminal.hideCursor();
 			return;