diff --git a/frontend/app/view/term/term-links.test.ts b/frontend/app/view/term/term-links.test.ts
new file mode 100644
index 0000000000..42a895200a
--- /dev/null
+++ b/frontend/app/view/term/term-links.test.ts
@@ -0,0 +1,44 @@
+// Copyright 2026, Command Line Inc.
+// SPDX-License-Identifier: Apache-2.0
+
+import { describe, expect, it, vi } from "vitest";
+import { makeTermLinkHandlers } from "./term-links";
+
+function linkEvent(metaKey = false, ctrlKey = false): MouseEvent {
+    return { metaKey, ctrlKey, preventDefault: vi.fn(), clientX: 12, clientY: 34 } as unknown as MouseEvent;
+}
+
+describe("terminal link handlers", () => {
+    it.each([
+        { isMacOS: true, modifier: "metaKey" },
+        { isMacOS: false, modifier: "ctrlKey" },
+    ])("only opens $modifier-clicked links on the corresponding platform", ({ isMacOS }) => {
+        const openUri = vi.fn();
+        const handlers = makeTermLinkHandlers(isMacOS, openUri, vi.fn());
+        const plainClick = linkEvent();
+        handlers.activate(plainClick, "https://example.com/first");
+        expect(plainClick.preventDefault).toHaveBeenCalledOnce();
+        expect(openUri).not.toHaveBeenCalled();
+
+        const wrongModifier = linkEvent(!isMacOS, isMacOS);
+        handlers.activate(wrongModifier, "https://example.com/second");
+        expect(openUri).not.toHaveBeenCalled();
+
+        const rightModifier = linkEvent(isMacOS, !isMacOS);
+        handlers.activate(rightModifier, "https://example.com/third");
+        expect(openUri).toHaveBeenCalledExactlyOnceWith("https://example.com/third");
+    });
+
+    it("shows the destination for OSC 8 links but keeps plain URL hover unchanged", () => {
+        const onHover = vi.fn();
+        const handlers = makeTermLinkHandlers(false, vi.fn(), onHover);
+        handlers.hover(linkEvent(), "https://example.com/visible");
+        handlers.osc8Hover(linkEvent(), "https://example.com/hidden");
+        handlers.leave();
+        expect(onHover.mock.calls).toEqual([
+            ["https://example.com/visible", 12, 34, false],
+            ["https://example.com/hidden", 12, 34, true],
+            [null, 0, 0, false],
+        ]);
+    });
+});
diff --git a/frontend/app/view/term/term-links.ts b/frontend/app/view/term/term-links.ts
new file mode 100644
index 0000000000..ceaf15c7ea
--- /dev/null
+++ b/frontend/app/view/term/term-links.ts
@@ -0,0 +1,21 @@
+// Copyright 2026, Command Line Inc.
+// SPDX-License-Identifier: Apache-2.0
+
+export function makeTermLinkHandlers(
+    isMacOS: boolean,
+    openUri: (uri: string) => void,
+    onHover: (uri: string | null, x: number, y: number, showUrl: boolean) => void
+) {
+    return {
+        activate: (event: MouseEvent, uri: string) => {
+            event.preventDefault();
+            if (!(isMacOS ? event.metaKey : event.ctrlKey)) {
+                return;
+            }
+            openUri(uri);
+        },
+        hover: (event: MouseEvent, uri: string) => onHover(uri, event.clientX, event.clientY, false),
+        osc8Hover: (event: MouseEvent, uri: string) => onHover(uri, event.clientX, event.clientY, true),
+        leave: () => onHover(null, 0, 0, false),
+    };
+}
diff --git a/frontend/app/view/term/term-tooltip.test.tsx b/frontend/app/view/term/term-tooltip.test.tsx
new file mode 100644
index 0000000000..15213c37e1
--- /dev/null
+++ b/frontend/app/view/term/term-tooltip.test.tsx
@@ -0,0 +1,22 @@
+// Copyright 2026, Command Line Inc.
+// SPDX-License-Identifier: Apache-2.0
+
+import { renderToStaticMarkup } from "react-dom/server";
+import { describe, expect, it } from "vitest";
+import { TermLinkTooltipContent } from "./term-tooltip";
+
+describe("TermLinkTooltipContent", () => {
+    it("keeps the existing modifier-click hint for plain URLs", () => {
+        const markup = renderToStaticMarkup(<TermLinkTooltipContent />);
+        expect(markup).toContain("-click to open link");
+        expect(markup).not.toContain("break-all");
+    });
+
+    it("shows and safely escapes the destination for OSC 8 links", () => {
+        const markup = renderToStaticMarkup(<TermLinkTooltipContent url="https://example.com/?next=<script>&x=1" />);
+        expect(markup).toContain("-click to open link");
+        expect(markup).toContain("https://example.com/?next=&lt;script&gt;&amp;x=1");
+        expect(markup).toContain("break-all");
+        expect(markup).not.toContain("<script>");
+    });
+});
diff --git a/frontend/app/view/term/term-tooltip.tsx b/frontend/app/view/term/term-tooltip.tsx
index 706233d329..cf67e778ba 100644
--- a/frontend/app/view/term/term-tooltip.tsx
+++ b/frontend/app/view/term/term-tooltip.tsx
@@ -77,6 +77,18 @@ const HoverDelayMs = 600;
 const MaxHoverTimeMs = 2200;
 const modKey = PLATFORM === PlatformMacOS ? "Cmd" : "Ctrl";
 
+export function TermLinkTooltipContent({ url }: { url?: string }) {
+    if (!url) {
+        return <span>{modKey}-click to open link</span>;
+    }
+    return (
+        <div className="max-w-[min(28rem,80vw)]">
+            <div>{modKey}-click to open link</div>
+            <div className="break-all">{url}</div>
+        </div>
+    );
+}
+
 interface TermLinkTooltipProps {
     /**
      * The live TermWrap instance. Pass the instance directly (not a ref) so
@@ -91,7 +103,7 @@ interface TermLinkTooltipProps {
  * prevents unnecessary re-renders of the parent TerminalView.
  */
 export const TermLinkTooltip = React.memo(function TermLinkTooltip({ termWrap }: TermLinkTooltipProps) {
-    const [mousePos, setMousePos] = React.useState<{ x: number; y: number } | null>(null);
+    const [mousePos, setMousePos] = React.useState<{ x: number; y: number; url?: string } | null>(null);
     const timeoutRef = React.useRef<number | null>(null);
     const maxTimeoutRef = React.useRef<number | null>(null);
 
@@ -100,7 +112,7 @@ export const TermLinkTooltip = React.memo(function TermLinkTooltip({ termWrap }:
             return;
         }
 
-        termWrap.onLinkHover = (uri: string | null, mouseX: number, mouseY: number) => {
+        termWrap.onLinkHover = (uri: string | null, mouseX: number, mouseY: number, showUrl: boolean) => {
             clearTimeoutRef(timeoutRef);
 
             if (uri == null) {
@@ -112,7 +124,7 @@ export const TermLinkTooltip = React.memo(function TermLinkTooltip({ termWrap }:
             // Show after a short delay so fast mouse movements don't flicker.
             timeoutRef.current = window.setTimeout(() => {
                 timeoutRef.current = null;
-                setMousePos({ x: mouseX, y: mouseY });
+                setMousePos({ x: mouseX, y: mouseY, url: showUrl ? uri : undefined });
                 // Auto-dismiss after MaxHoverTimeMs so the tooltip doesn't linger forever.
                 clearTimeoutRef(maxTimeoutRef);
                 maxTimeoutRef.current = window.setTimeout(() => {
@@ -130,5 +142,5 @@ export const TermLinkTooltip = React.memo(function TermLinkTooltip({ termWrap }:
         };
     }, [termWrap]);
 
-    return <TermTooltip mousePos={mousePos} content={<span>{modKey}-click to open link</span>} />;
+    return <TermTooltip mousePos={mousePos} content={<TermLinkTooltipContent url={mousePos?.url} />} />;
 });
diff --git a/frontend/app/view/term/termwrap.ts b/frontend/app/view/term/termwrap.ts
index d10b600459..956d5fc9e2 100644
--- a/frontend/app/view/term/termwrap.ts
+++ b/frontend/app/view/term/termwrap.ts
@@ -36,6 +36,7 @@ import {
     isClaudeCodeCommand,
     type ShellIntegrationStatus,
 } from "./osc-handlers";
+import { makeTermLinkHandlers } from "./term-links";
 import {
     bufferLinesToText,
     createTempFileFromBlob,
@@ -104,7 +105,7 @@ export class TermWrap {
     claudeCodeActiveAtom: jotai.PrimitiveAtom<boolean>;
     nodeModel: BlockNodeModel; // this can be null
     hoveredLinkUri: string | null = null;
-    onLinkHover?: (uri: string | null, mouseX: number, mouseY: number) => void;
+    onLinkHover?: (uri: string | null, mouseX: number, mouseY: number, showUrl: boolean) => void;
 
     // Paste deduplication
     // xterm.js paste() method triggers onData event, which can cause duplicate sends
@@ -143,7 +144,22 @@ export class TermWrap {
         this.lastCommandAtom = jotai.atom(null) as jotai.PrimitiveAtom<string | null>;
         this.claudeCodeActiveAtom = jotai.atom(false);
         this.webglEnabledAtom = jotai.atom(false) as jotai.PrimitiveAtom<boolean>;
-        this.terminal = new Terminal(options);
+        const linkHandlers = makeTermLinkHandlers(
+            PLATFORM === PlatformMacOS,
+            (uri) => fireAndForget(() => openLink(uri)),
+            (uri, x, y, showUrl) => {
+                this.hoveredLinkUri = uri;
+                this.onLinkHover?.(uri, x, y, showUrl);
+            }
+        );
+        this.terminal = new Terminal({
+            ...options,
+            linkHandler: {
+                activate: linkHandlers.activate,
+                hover: linkHandlers.osc8Hover,
+                leave: linkHandlers.leave,
+            },
+        });
         this.fitAddon = new FitAddon();
         this.serializeAddon = new SerializeAddon();
         this.searchAddon = new SearchAddon();
@@ -151,33 +167,7 @@ export class TermWrap {
         this.terminal.loadAddon(this.fitAddon);
         this.terminal.loadAddon(this.serializeAddon);
         this.terminal.loadAddon(
-            new WebLinksAddon(
-                (e, uri) => {
-                    e.preventDefault();
-                    switch (PLATFORM) {
-                        case PlatformMacOS:
-                            if (e.metaKey) {
-                                fireAndForget(() => openLink(uri));
-                            }
-                            break;
-                        default:
-                            if (e.ctrlKey) {
-                                fireAndForget(() => openLink(uri));
-                            }
-                            break;
-                    }
-                },
-                {
-                    hover: (e, uri) => {
-                        this.hoveredLinkUri = uri;
-                        this.onLinkHover?.(uri, e.clientX, e.clientY);
-                    },
-                    leave: () => {
-                        this.hoveredLinkUri = null;
-                        this.onLinkHover?.(null, 0, 0);
-                    },
-                }
-            )
+            new WebLinksAddon(linkHandlers.activate, { hover: linkHandlers.hover, leave: linkHandlers.leave })
         );
         this.setTermRenderer(WebGLSupported && waveOptions.useWebGl ? "webgl" : "dom");
         // Register OSC handlers