diff --git a/packages/coding-agent/src/tui/tool-execution.ts b/packages/coding-agent/src/tui/tool-execution.ts
index 6c4dc9d8..d33a5ed6 100644
--- a/packages/coding-agent/src/tui/tool-execution.ts
+++ b/packages/coding-agent/src/tui/tool-execution.ts
@@ -1,10 +1,11 @@
-import { Container, Markdown } from "@mariozechner/pi-tui";
+import { Container, Text } from "@mariozechner/pi-tui";
+import chalk from "chalk";
 
 /**
  * Component that renders a tool call with its result (updateable)
  */
 export class ToolExecutionComponent extends Container {
-	private markdown: Markdown;
+	private text: Text;
 	private toolName: string;
 	private args: any;
 	private result?: { output: string; isError: boolean };
@@ -13,8 +14,8 @@ export class ToolExecutionComponent extends Container {
 		super();
 		this.toolName = toolName;
 		this.args = args;
-		this.markdown = new Markdown("", undefined, undefined, { r: 40, g: 40, b: 50 });
-		this.addChild(this.markdown);
+		this.text = new Text("", 1, 1, { r: 40, g: 40, b: 50 });
+		this.addChild(this.text);
 		this.updateDisplay();
 	}
 
@@ -29,17 +30,18 @@ export class ToolExecutionComponent extends Container {
 				? { r: 60, g: 40, b: 40 }
 				: { r: 40, g: 50, b: 40 }
 			: { r: 40, g: 40, b: 50 };
-		this.markdown.setCustomBgRgb(bgColor);
-		this.markdown.setText(this.formatToolExecution());
+		this.text.setCustomBgRgb(bgColor);
+		this.text.setText(this.formatToolExecution());
 	}
 
 	private formatToolExecution(): string {
-		let text = "";
+		// Start with blank line for spacing
+		let text = "\n";
 
 		// Format based on tool type
 		if (this.toolName === "bash") {
 			const command = this.args.command || "";
-			text = `**$ ${command}**`;
+			text += chalk.bold(`$ ${command}`);
 			if (this.result) {
 				// Show output without code fences - more minimal
 				const output = this.result.output.trim();
@@ -61,7 +63,7 @@ export class ToolExecutionComponent extends Container {
 			}
 		} else if (this.toolName === "read") {
 			const path = this.args.path || "";
-			text = `**read** \`${path}\``;
+			text += chalk.bold("read") + " " + path;
 			if (this.result) {
 				const lines = this.result.output.split("\n");
 				const maxLines = 10;
@@ -81,25 +83,27 @@ export class ToolExecutionComponent extends Container {
 			const path = this.args.path || "";
 			const content = this.args.content || "";
 			const lines = content.split("\n");
-			text = `**write** \`${path}\``;
+			const totalLines = lines.length;
+
+			text += chalk.bold("write") + " " + path;
+			if (totalLines > 10) {
+				text += ` (${totalLines} lines)`;
+			}
+
 			if (this.result) {
-				const totalLines = lines.length;
-				if (totalLines > 10) {
-					text += ` (${totalLines} lines)`;
-				}
 				text += this.result.isError ? " ❌" : " ✓";
 			}
 		} else if (this.toolName === "edit") {
 			const path = this.args.path || "";
-			text = `**edit** \`${path}\``;
+			text += chalk.bold("edit") + " " + path;
 			if (this.result) {
 				text += this.result.isError ? " ❌" : " ✓";
 			}
 		} else {
 			// Generic tool
-			text = `**${this.toolName}**\n\`\`\`json\n${JSON.stringify(this.args, null, 2)}\n\`\`\``;
+			text += chalk.bold(this.toolName) + "\n" + JSON.stringify(this.args, null, 2);
 			if (this.result) {
-				text += `\n\`\`\`\n${this.result.output}\n\`\`\``;
+				text += "\n" + this.result.output;
 				text += this.result.isError ? " ❌" : " ✓";
 			}
 		}
diff --git a/packages/coding-agent/src/tui/tui-renderer.ts b/packages/coding-agent/src/tui/tui-renderer.ts
index 85524cfe..3a323a0a 100644
--- a/packages/coding-agent/src/tui/tui-renderer.ts
+++ b/packages/coding-agent/src/tui/tui-renderer.ts
@@ -1,4 +1,4 @@
-import type { Agent, AgentState, ThinkingLevel } from "@mariozechner/pi-agent";
+import type { Agent, AgentEvent, AgentState, ThinkingLevel } from "@mariozechner/pi-agent";
 import type { AssistantMessage, Message } from "@mariozechner/pi-ai";
 import type { SlashCommand } from "@mariozechner/pi-tui";
 import {
@@ -166,7 +166,7 @@ export class TuiRenderer {
 		this.isInitialized = true;
 	}
 
-	async handleEvent(event: import("@mariozechner/pi-agent").AgentEvent, state: AgentState): Promise<void> {
+	async handleEvent(event: AgentEvent, state: AgentState): Promise<void> {
 		if (!this.isInitialized) {
 			await this.init();
 		}
diff --git a/packages/tui/src/components/text.ts b/packages/tui/src/components/text.ts
index 79f805c5..b1b6946a 100644
--- a/packages/tui/src/components/text.ts
+++ b/packages/tui/src/components/text.ts
@@ -1,3 +1,4 @@
+import chalk from "chalk";
 import type { Component } from "../tui.js";
 import { visibleWidth } from "../utils.js";
 
@@ -8,16 +9,23 @@ export class Text implements Component {
 	private text: string;
 	private paddingX: number; // Left/right padding
 	private paddingY: number; // Top/bottom padding
+	private customBgRgb?: { r: number; g: number; b: number };
 
 	// Cache for rendered output
 	private cachedText?: string;
 	private cachedWidth?: number;
 	private cachedLines?: string[];
 
-	constructor(text: string = "", paddingX: number = 1, paddingY: number = 1) {
+	constructor(
+		text: string = "",
+		paddingX: number = 1,
+		paddingY: number = 1,
+		customBgRgb?: { r: number; g: number; b: number },
+	) {
 		this.text = text;
 		this.paddingX = paddingX;
 		this.paddingY = paddingY;
+		this.customBgRgb = customBgRgb;
 	}
 
 	setText(text: string): void {
@@ -28,6 +36,14 @@ export class Text implements Component {
 		this.cachedLines = undefined;
 	}
 
+	setCustomBgRgb(customBgRgb?: { r: number; g: number; b: number }): void {
+		this.customBgRgb = customBgRgb;
+		// Invalidate cache when color changes
+		this.cachedText = undefined;
+		this.cachedWidth = undefined;
+		this.cachedLines = undefined;
+	}
+
 	render(width: number): string[] {
 		// Check cache
 		if (this.cachedLines && this.cachedText === this.text && this.cachedWidth === width) {
@@ -91,20 +107,35 @@ export class Text implements Component {
 			// Right padding to fill to width (accounting for left padding and content)
 			const rightPadLength = Math.max(0, width - this.paddingX - visibleLength);
 			const rightPad = " ".repeat(rightPadLength);
-			paddedLines.push(leftPad + line + rightPad);
+			let paddedLine = leftPad + line + rightPad;
+
+			// Apply background color if specified
+			if (this.customBgRgb) {
+				paddedLine = chalk.bgRgb(this.customBgRgb.r, this.customBgRgb.g, this.customBgRgb.b)(paddedLine);
+			}
+
+			paddedLines.push(paddedLine);
 		}
 
 		// Add top padding (empty lines)
 		const emptyLine = " ".repeat(width);
 		const topPadding: string[] = [];
 		for (let i = 0; i < this.paddingY; i++) {
-			topPadding.push(emptyLine);
+			let emptyPaddedLine = emptyLine;
+			if (this.customBgRgb) {
+				emptyPaddedLine = chalk.bgRgb(this.customBgRgb.r, this.customBgRgb.g, this.customBgRgb.b)(emptyPaddedLine);
+			}
+			topPadding.push(emptyPaddedLine);
 		}
 
 		// Add bottom padding (empty lines)
 		const bottomPadding: string[] = [];
 		for (let i = 0; i < this.paddingY; i++) {
-			bottomPadding.push(emptyLine);
+			let emptyPaddedLine = emptyLine;
+			if (this.customBgRgb) {
+				emptyPaddedLine = chalk.bgRgb(this.customBgRgb.r, this.customBgRgb.g, this.customBgRgb.b)(emptyPaddedLine);
+			}
+			bottomPadding.push(emptyPaddedLine);
 		}
 
 		// Combine top padding, content, and bottom padding