diff --git a/.changeset/background-subagent-finalization.md b/.changeset/background-subagent-finalization.md
new file mode 100644
index 000000000..7d3b678f9
--- /dev/null
+++ b/.changeset/background-subagent-finalization.md
@@ -0,0 +1,5 @@
+---
+"eve": patch
+---
+
+Finalize completed background subagent sections immediately when the child stream reaches a success or failure boundary. Completed sections remain in transcript history but no longer occupy or redraw the live prompt region.
diff --git a/packages/eve/src/cli/dev/tui/runner.test.ts b/packages/eve/src/cli/dev/tui/runner.test.ts
index 82e890726..2c88a4254 100644
--- a/packages/eve/src/cli/dev/tui/runner.test.ts
+++ b/packages/eve/src/cli/dev/tui/runner.test.ts
@@ -2437,7 +2437,7 @@ describe("EveTUIRunner renderer teardown", () => {
           upsertTool: vi.fn(),
           removeTool: vi.fn(),
           markChildToolCallId: vi.fn(),
-          complete: (update: { callId: string }) => {
+          complete: (update: { authoritative: boolean; callId: string }) => {
             completeSubagent(update);
             completed.resolve();
           },
@@ -2467,7 +2467,7 @@ describe("EveTUIRunner renderer teardown", () => {
     await runner.run();
     await completed.promise;
 
-    expect(completeSubagent).toHaveBeenCalledWith({ callId: "call-child" });
+    expect(completeSubagent).toHaveBeenCalledWith({ authoritative: true, callId: "call-child" });
   });
 
   it("does not settle a subagent section when completed carries a background receipt", async () => {
@@ -3503,7 +3503,7 @@ describe("EveTUIRunner cancelled-turn subagent settling", () => {
     expect(view.begin).toHaveBeenCalledWith({ callId: "call-1", name: "researcher" });
     // `subagent.completed` never arrives for a cancelled delegation — the
     // cancellation itself must close the section.
-    expect(view.complete).toHaveBeenCalledWith({ callId: "call-1" });
+    expect(view.complete).toHaveBeenCalledWith({ authoritative: true, callId: "call-1" });
   });
 });
 
diff --git a/packages/eve/src/cli/dev/tui/subagent-pump.test.ts b/packages/eve/src/cli/dev/tui/subagent-pump.test.ts
index f6617a925..e4a722760 100644
--- a/packages/eve/src/cli/dev/tui/subagent-pump.test.ts
+++ b/packages/eve/src/cli/dev/tui/subagent-pump.test.ts
@@ -97,6 +97,16 @@ function boundaryEvent(index: number): MessageStreamEvent {
   );
 }
 
+function failedBoundaryEvent(index: number): MessageStreamEvent {
+  return stampTestEvent(
+    {
+      type: "session.failed",
+      data: { code: "SESSION_FAILED", message: "child failed", sessionId: "child_call-1" },
+    } as UnstampedMessageStreamEvent,
+    index,
+  );
+}
+
 async function settleAsyncWork(): Promise<void> {
   for (let i = 0; i < 8; i += 1) await Promise.resolve();
 }
@@ -120,7 +130,7 @@ describe("SubagentPump.settleAll", () => {
 
     // The parent turn is cancelled: sections settle and the stream stops.
     pump.settleAll();
-    expect(view.complete).toHaveBeenCalledWith({ callId: "call-1" });
+    expect(view.complete).toHaveBeenCalledWith({ authoritative: true, callId: "call-1" });
     expect(view.upsertStep).toHaveBeenCalledWith(
       expect.objectContaining({ callId: "call-1", finalized: true }),
     );
@@ -161,7 +171,34 @@ describe("SubagentPump background receipts", () => {
     expect(view.upsertStep).toHaveBeenCalledWith(
       expect.objectContaining({ callId: "call-1", reasoning: "still working" }),
     );
-    expect(view.complete).toHaveBeenCalledWith({ callId: "call-1" });
+    expect(view.complete).toHaveBeenCalledWith({ authoritative: true, callId: "call-1" });
+  });
+
+  it("treats a child failure boundary as authoritative completion", async () => {
+    const child = pushableChildStream();
+    const client = new Client({ host: "http://localhost:3000" });
+    vi.spyOn(client, "session").mockReturnValue({
+      stream: (options?: { signal?: AbortSignal }) => child.stream(options),
+    } as never);
+    const view = fakeView();
+    const pump = new SubagentPump({ client, view, formatActionResultError: () => "failed" });
+
+    pump.begin(subagentCalled("call-1"));
+    pump.background("call-1");
+    child.push(failedBoundaryEvent(0));
+    await settleAsyncWork();
+
+    expect(view.complete).toHaveBeenCalledWith({ authoritative: true, callId: "call-1" });
+  });
+
+  it("keeps parent completion fallback non-authoritative for late child events", () => {
+    const view = fakeView();
+    const pump = new SubagentPump({ view, formatActionResultError: () => "failed" });
+
+    pump.begin(subagentCalled("call-1"));
+    pump.settle("call-1");
+
+    expect(view.complete).toHaveBeenCalledWith({ authoritative: false, callId: "call-1" });
   });
 });
 
diff --git a/packages/eve/src/cli/dev/tui/subagent-pump.ts b/packages/eve/src/cli/dev/tui/subagent-pump.ts
index 3c7fe5b0b..cef124dbb 100644
--- a/packages/eve/src/cli/dev/tui/subagent-pump.ts
+++ b/packages/eve/src/cli/dev/tui/subagent-pump.ts
@@ -36,7 +36,7 @@ export interface SubagentView {
   /** Drops a child tool row whose call never materialized. */
   removeTool(update: { callId: string; childCallId: string }): void;
   /** Marks a call complete so its section collapses on `└ Done…`. */
-  complete(update: { callId: string }): void;
+  complete(update: { authoritative: boolean; callId: string }): void;
   /** Suppresses the parent-level tool row for a child-owned call id. */
   markChildToolCallId(callId: string): void;
 }
@@ -176,7 +176,7 @@ export class SubagentPump {
    * (the parent and child streams are independent HTTP connections).
    */
   settle(callId: string): void {
-    this.#finalizeRun(callId);
+    this.#finalizeRun(callId, false);
   }
 
   /**
@@ -208,7 +208,7 @@ export class SubagentPump {
    */
   settleAll(): void {
     for (const callId of this.#runs.keys()) {
-      this.#finalizeRun(callId);
+      this.#finalizeRun(callId, true);
     }
     for (const controller of this.#pumps.values()) {
       controller.abort();
@@ -281,7 +281,7 @@ export class SubagentPump {
       } finally {
         this.#pumps.delete(callId);
       }
-      if (boundaryReached) this.#finalizeRun(callId);
+      if (boundaryReached) this.#finalizeRun(callId, true);
     })();
   }
 
@@ -342,7 +342,7 @@ export class SubagentPump {
    * the idempotency authority — the child's turn boundary and the parent's
    * `subagent.completed` can both land here.
    */
-  #finalizeRun(callId: string): void {
+  #finalizeRun(callId: string, authoritative: boolean): void {
     const run = this.#runs.get(callId);
     if (!run || run.status === "settled") return;
     run.status = "settled";
@@ -361,7 +361,7 @@ export class SubagentPump {
     }
     run.currentSectionKey = null;
     this.#sweepPreparingTools(callId, run);
-    this.#view?.complete({ callId });
+    this.#view?.complete({ authoritative, callId });
   }
 
   /**
diff --git a/packages/eve/src/cli/dev/tui/terminal-renderer.test.ts b/packages/eve/src/cli/dev/tui/terminal-renderer.test.ts
index b32d6f905..d1d0c9f59 100644
--- a/packages/eve/src/cli/dev/tui/terminal-renderer.test.ts
+++ b/packages/eve/src/cli/dev/tui/terminal-renderer.test.ts
@@ -1294,7 +1294,7 @@ describe("TerminalRenderer (inline scrollback)", () => {
     expect(screen.snapshot()).toContain("Fetched https://one.example");
     expect(screen.snapshot()).not.toContain("Done");
 
-    renderer.completeSubagent({ callId: "s1" });
+    renderer.completeSubagent({ authoritative: true, callId: "s1" });
     const snapshot = screen.snapshot();
     // Completed: the corner reports Done with the counted footnote and the
     // children fold away — the parent's reply carries the conclusion.
@@ -1304,6 +1304,34 @@ describe("TerminalRenderer (inline scrollback)", () => {
     renderer.shutdown();
   });
 
+  it("commits an authoritative background completion out of the live prompt region", async () => {
+    const { screen, input, renderer } = makeRenderer();
+    renderer.renderAgentHeader({ name: "Weather Agent", serverUrl: "http://localhost:3000" });
+    renderer.beginSubagent({ callId: "s1", name: "researcher" });
+    renderer.backgroundSubagent({ callId: "s1" });
+    renderer.upsertSubagentTool({
+      callId: "s1",
+      subagentName: "researcher",
+      childCallId: "dig-1",
+      toolName: "dig",
+      input: { phase: "sources" },
+      status: "done",
+      output: { ok: true },
+    });
+
+    renderer.completeSubagent({ authoritative: true, callId: "s1" });
+    const outputAfterCommit = screen.rawOutput().length;
+    const prompt = renderer.readPrompt();
+    input.type("next message");
+
+    // Prompt repaint must not redraw the completed subagent cohort: it has
+    // moved to immutable scrollback and no longer occupies the live region.
+    expect(screen.rawOutput().slice(outputAfterCommit)).not.toContain("subagent(researcher)");
+    input.enter();
+    expect(await prompt).toBe("next message");
+    renderer.shutdown();
+  });
+
   it("renders parallel calls to the same subagent as ordinal-numbered sections", async () => {
     const { screen, renderer } = makeRenderer();
     renderer.renderAgentHeader({ name: "Weather Agent", serverUrl: "http://localhost:3000" });
diff --git a/packages/eve/src/cli/dev/tui/terminal-renderer.ts b/packages/eve/src/cli/dev/tui/terminal-renderer.ts
index e9be2d5e3..0b8aba44c 100644
--- a/packages/eve/src/cli/dev/tui/terminal-renderer.ts
+++ b/packages/eve/src/cli/dev/tui/terminal-renderer.ts
@@ -1497,11 +1497,16 @@ export class TerminalRenderer implements AgentTUIRenderer {
    * section's closing corner reports `Done`. The header stays live until the
    * turn finalizes (committing mid-turn would freeze its child window).
    */
-  completeSubagent(update: { callId: string }): void {
+  completeSubagent(update: { authoritative: boolean; callId: string }): void {
     const header = this.#blockById.get(subagentHeaderId(update.callId));
     if (header === undefined) return;
     header.status = "done";
     this.#backgroundSubagentCallIds.delete(update.callId);
+    if (update.authoritative) {
+      for (const block of this.#blocks) {
+        if (block.subagentCallId === update.callId) block.live = false;
+      }
+    }
     this.#paint();
   }