diff --git a/packages/coding-agent/src/main.ts b/packages/coding-agent/src/main.ts
index 7f764ac1..067370b2 100644
--- a/packages/coding-agent/src/main.ts
+++ b/packages/coding-agent/src/main.ts
@@ -717,7 +717,7 @@ async function runInteractiveMode(
 	version: string,
 	changelogMarkdown: string | null = null,
 	modelFallbackMessage: string | null = null,
-	newVersion: string | null = null,
+	versionCheckPromise: Promise<string | null>,
 	scopedModels: Array<{ model: Model<Api>; thinkingLevel: ThinkingLevel }> = [],
 	initialMessages: string[] = [],
 	initialMessage?: string,
@@ -730,7 +730,6 @@ async function runInteractiveMode(
 		settingsManager,
 		version,
 		changelogMarkdown,
-		newVersion,
 		scopedModels,
 		fdPath,
 	);
@@ -738,6 +737,13 @@ async function runInteractiveMode(
 	// Initialize TUI (subscribes to agent events internally)
 	await renderer.init();
 
+	// Handle version check result when it completes (don't block)
+	versionCheckPromise.then((newVersion) => {
+		if (newVersion) {
+			renderer.showNewVersionNotification(newVersion);
+		}
+	});
+
 	// Render any existing messages (from --continue mode)
 	renderer.renderInitialMessages(agent.state);
 
@@ -1334,16 +1340,8 @@ export async function main(args: string[]) {
 		// RPC mode - headless operation
 		await runRpcMode(agent, sessionManager, settingsManager);
 	} else if (isInteractive) {
-		// Check for new version (don't block startup if it takes too long)
-		let newVersion: string | null = null;
-		try {
-			newVersion = await Promise.race([
-				checkForNewVersion(VERSION),
-				new Promise<null>((resolve) => setTimeout(() => resolve(null), 1000)), // 1 second timeout
-			]);
-		} catch (e) {
-			// Ignore errors
-		}
+		// Check for new version in the background (don't block startup)
+		const versionCheckPromise = checkForNewVersion(VERSION).catch(() => null);
 
 		// Check if we should show changelog (only in interactive mode, only for new sessions)
 		let changelogMarkdown: string | null = null;
@@ -1394,7 +1392,7 @@ export async function main(args: string[]) {
 			VERSION,
 			changelogMarkdown,
 			modelFallbackMessage,
-			newVersion,
+			versionCheckPromise,
 			scopedModels,
 			parsed.messages,
 			initialMessage,
diff --git a/packages/coding-agent/src/tui/tui-renderer.ts b/packages/coding-agent/src/tui/tui-renderer.ts
index 5447654c..53d9c781 100644
--- a/packages/coding-agent/src/tui/tui-renderer.ts
+++ b/packages/coding-agent/src/tui/tui-renderer.ts
@@ -70,7 +70,6 @@ export class TuiRenderer {
 
 	private lastSigintTime = 0;
 	private changelogMarkdown: string | null = null;
-	private newVersion: string | null = null;
 
 	// Message queueing
 	private queuedMessages: string[] = [];
@@ -126,7 +125,6 @@ export class TuiRenderer {
 		settingsManager: SettingsManager,
 		version: string,
 		changelogMarkdown: string | null = null,
-		newVersion: string | null = null,
 		scopedModels: Array<{ model: Model<any>; thinkingLevel: ThinkingLevel }> = [],
 		fdPath: string | null = null,
 	) {
@@ -134,7 +132,6 @@ export class TuiRenderer {
 		this.sessionManager = sessionManager;
 		this.settingsManager = settingsManager;
 		this.version = version;
-		this.newVersion = newVersion;
 		this.changelogMarkdown = changelogMarkdown;
 		this.scopedModels = scopedModels;
 		this.ui = new TUI(new ProcessTerminal());
@@ -303,22 +300,6 @@ export class TuiRenderer {
 		this.ui.addChild(header);
 		this.ui.addChild(new Spacer(1));
 
-		// Add new version notification if available
-		if (this.newVersion) {
-			this.ui.addChild(new DynamicBorder((text) => theme.fg("warning", text)));
-			this.ui.addChild(
-				new Text(
-					theme.bold(theme.fg("warning", "Update Available")) +
-						"\n" +
-						theme.fg("muted", `New version ${this.newVersion} is available. Run: `) +
-						theme.fg("accent", "npm install -g @mariozechner/pi-coding-agent"),
-					1,
-					0,
-				),
-			);
-			this.ui.addChild(new DynamicBorder((text) => theme.fg("warning", text)));
-		}
-
 		// Add changelog if provided
 		if (this.changelogMarkdown) {
 			this.ui.addChild(new DynamicBorder());
@@ -1214,6 +1195,24 @@ export class TuiRenderer {
 		this.ui.requestRender();
 	}
 
+	showNewVersionNotification(newVersion: string): void {
+		// Show new version notification in the chat
+		this.chatContainer.addChild(new Spacer(1));
+		this.chatContainer.addChild(new DynamicBorder((text) => theme.fg("warning", text)));
+		this.chatContainer.addChild(
+			new Text(
+				theme.bold(theme.fg("warning", "Update Available")) +
+					"\n" +
+					theme.fg("muted", `New version ${newVersion} is available. Run: `) +
+					theme.fg("accent", "npm install -g @mariozechner/pi-coding-agent"),
+				1,
+				0,
+			),
+		);
+		this.chatContainer.addChild(new DynamicBorder((text) => theme.fg("warning", text)));
+		this.ui.requestRender();
+	}
+
 	private showThinkingSelector(): void {
 		// Create thinking selector with current level
 		this.thinkingSelector = new ThinkingSelectorComponent(