diff --git a/packages/tui/CHANGELOG.md b/packages/tui/CHANGELOG.md
index 8f56c122..b852bd24 100644
--- a/packages/tui/CHANGELOG.md
+++ b/packages/tui/CHANGELOG.md
@@ -8,6 +8,7 @@
 - Fixed Kitty CSI-u handling to ignore unsupported modifiers so modifier-only events do not insert stray printable characters ([#1807](https://github.com/badlogic/pi-mono/issues/1807))
 - Fixed single-line paste performance by inserting pasted text atomically instead of character-by-character, preventing repeated `@` autocomplete scans during paste ([#1812](https://github.com/badlogic/pi-mono/issues/1812))
 - Fixed `visibleWidth()` to ignore generic OSC escape sequences (including OSC 133 semantic prompt markers), preventing width drift when terminals emit semantic zone markers ([#1805](https://github.com/badlogic/pi-mono/issues/1805))
+- Fixed markdown blockquotes dropping nested list content by rendering blockquote children as block-level tokens ([#1787](https://github.com/badlogic/pi-mono/issues/1787))
 
 ## [0.55.4] - 2026-03-02
 
diff --git a/packages/tui/src/components/markdown.ts b/packages/tui/src/components/markdown.ts
index 9bb15b1c..cb0cc1c9 100644
--- a/packages/tui/src/components/markdown.ts
+++ b/packages/tui/src/components/markdown.ts
@@ -331,19 +331,36 @@ export class Markdown implements Component {
 
 			case "blockquote": {
 				const quoteStyle = (text: string) => this.theme.quote(this.theme.italic(text));
-				const quoteStyleContext: InlineStyleContext = {
-					applyText: quoteStyle,
-					stylePrefix: this.getStylePrefix(quoteStyle),
+				const quoteStylePrefix = this.getStylePrefix(quoteStyle);
+				const applyQuoteStyle = (line: string): string => {
+					if (!quoteStylePrefix) {
+						return quoteStyle(line);
+					}
+					const lineWithReappliedStyle = line.replace(/\x1b\[0m/g, `\x1b[0m${quoteStylePrefix}`);
+					return quoteStyle(lineWithReappliedStyle);
 				};
-				const quoteText = this.renderInlineTokens(token.tokens || [], quoteStyleContext);
-				const quoteLines = quoteText.split("\n");
 
 				// Calculate available width for quote content (subtract border "│ " = 2 chars)
 				const quoteContentWidth = Math.max(1, width - 2);
 
-				for (const quoteLine of quoteLines) {
-					// Wrap the styled line, then add border to each wrapped line
-					const wrappedLines = wrapTextWithAnsi(quoteLine, quoteContentWidth);
+				// Blockquotes contain block-level tokens (paragraph, list, code, etc.), so render
+				// children with renderToken() instead of renderInlineTokens().
+				const quoteTokens = token.tokens || [];
+				const renderedQuoteLines: string[] = [];
+				for (let i = 0; i < quoteTokens.length; i++) {
+					const quoteToken = quoteTokens[i];
+					const nextQuoteToken = quoteTokens[i + 1];
+					renderedQuoteLines.push(...this.renderToken(quoteToken, quoteContentWidth, nextQuoteToken?.type));
+				}
+
+				// Avoid rendering an extra empty quote line before the outer blockquote spacing.
+				while (renderedQuoteLines.length > 0 && renderedQuoteLines[renderedQuoteLines.length - 1] === "") {
+					renderedQuoteLines.pop();
+				}
+
+				for (const quoteLine of renderedQuoteLines) {
+					const styledLine = applyQuoteStyle(quoteLine);
+					const wrappedLines = wrapTextWithAnsi(styledLine, quoteContentWidth);
 					for (const wrappedLine of wrappedLines) {
 						lines.push(this.theme.quoteBorder("│ ") + wrappedLine);
 					}
diff --git a/packages/tui/test/markdown.test.ts b/packages/tui/test/markdown.test.ts
index 824ff3ca..2bf859bb 100644
--- a/packages/tui/test/markdown.test.ts
+++ b/packages/tui/test/markdown.test.ts
@@ -757,6 +757,29 @@ bar`,
 			assert.ok(!barLine?.includes("\x1b[36m"), `bar line should NOT have cyan color: ${barLine}`);
 		});
 
+		it("should render list content inside blockquotes", () => {
+			const markdown = new Markdown(
+				`> 1. bla bla
+> - nested bullet`,
+				0,
+				0,
+				defaultMarkdownTheme,
+			);
+
+			const lines = markdown.render(80);
+			const plainLines = lines.map((line) => line.replace(/\x1b\[[0-9;]*m/g, ""));
+			const quotedLines = plainLines.filter((line) => line.startsWith("│ "));
+
+			assert.ok(
+				quotedLines.some((line) => line.includes("1. bla bla")),
+				`Missing ordered list item: ${JSON.stringify(quotedLines)}`,
+			);
+			assert.ok(
+				quotedLines.some((line) => line.includes("- nested bullet")),
+				`Missing unordered list item: ${JSON.stringify(quotedLines)}`,
+			);
+		});
+
 		it("should wrap long blockquote lines and add border to each wrapped line", () => {
 			const longText = "This is a very long blockquote line that should wrap to multiple lines when rendered";
 			const markdown = new Markdown(`> ${longText}`, 0, 0, defaultMarkdownTheme);