diff --git a/src/integrations/terminal/BaseTerminal.ts b/src/integrations/terminal/BaseTerminal.ts
index a79d417b07..4e4c47a557 100644
--- a/src/integrations/terminal/BaseTerminal.ts
+++ b/src/integrations/terminal/BaseTerminal.ts
@@ -71,17 +71,25 @@ export abstract class BaseTerminal implements RooTerminal {
 	 * @param exitDetails The exit details of the shell execution
 	 */
 	public shellExecutionComplete(exitDetails: ExitCodeDetails) {
-		this.busy = false
-		this.running = false
-
+		// Only update state if we have an active process
+		// This prevents duplicate calls from affecting the state
 		if (this.process) {
+			this.running = false
+
 			// Add to the front of the queue (most recent first).
 			if (this.process.hasUnretrievedOutput()) {
 				this.completedProcesses.unshift(this.process)
 			}
 
+			// Emit the event before clearing the process reference
 			this.process.emit("shell_execution_complete", exitDetails)
+
+			// Clear the process reference
+			const completedProcess = this.process
 			this.process = undefined
+
+			// The busy state will be managed by the TerminalProcess itself
+			// to prevent race conditions with compound commands
 		}
 	}
 
diff --git a/src/integrations/terminal/Terminal.ts b/src/integrations/terminal/Terminal.ts
index 8bf2072f3d..24acfc6ffa 100644
--- a/src/integrations/terminal/Terminal.ts
+++ b/src/integrations/terminal/Terminal.ts
@@ -54,9 +54,16 @@ export class Terminal extends BaseTerminal {
 		// This ensures that we don't miss any events because they are
 		// configured before the process starts.
 		process.on("line", (line) => callbacks.onLine(line, process))
-		process.once("completed", (output) => callbacks.onCompleted(output, process))
+		process.once("completed", (output) => {
+			// Ensure busy is set to false when completed
+			this.busy = false
+			callbacks.onCompleted(output, process)
+		})
 		process.once("shell_execution_started", (pid) => callbacks.onShellExecutionStarted(pid, process))
-		process.once("shell_execution_complete", (details) => callbacks.onShellExecutionComplete(details, process))
+		process.once("shell_execution_complete", (details) => {
+			// Note: busy state is managed by TerminalProcess and BaseTerminal
+			callbacks.onShellExecutionComplete(details, process)
+		})
 		process.once("no_shell_integration", (msg) => callbacks.onNoShellIntegration?.(msg, process))
 
 		const promise = new Promise<void>((resolve, reject) => {
diff --git a/src/integrations/terminal/TerminalProcess.ts b/src/integrations/terminal/TerminalProcess.ts
index 70917ff1e6..d1d59979e4 100644
--- a/src/integrations/terminal/TerminalProcess.ts
+++ b/src/integrations/terminal/TerminalProcess.ts
@@ -16,6 +16,8 @@ import { Terminal } from "./Terminal"
 
 export class TerminalProcess extends BaseTerminalProcess {
 	private terminalRef: WeakRef<Terminal>
+	private shellExecutionCompleteCount: number = 0
+	private hasCompleted: boolean = false
 
 	constructor(terminal: Terminal) {
 		super()
@@ -23,12 +25,20 @@ export class TerminalProcess extends BaseTerminalProcess {
 		this.terminalRef = new WeakRef(terminal)
 
 		this.once("completed", () => {
-			this.terminal.busy = false
+			// Only set busy to false if not already done
+			if (!this.hasCompleted) {
+				this.hasCompleted = true
+				this.terminal.busy = false
+			}
 		})
 
 		this.once("no_shell_integration", () => {
 			this.emit("completed", "<no shell integration>")
-			this.terminal.busy = false
+			// Only set busy to false if not already done
+			if (!this.hasCompleted) {
+				this.hasCompleted = true
+				this.terminal.busy = false
+			}
 			this.terminal.setActiveStream(undefined)
 			this.continue()
 		})
@@ -122,7 +132,15 @@ export class TerminalProcess extends BaseTerminalProcess {
 
 		// Create promise that resolves when shell execution completes for this terminal
 		const shellExecutionComplete = new Promise<ExitCodeDetails>((resolve) => {
-			this.once("shell_execution_complete", (details: ExitCodeDetails) => resolve(details))
+			this.once("shell_execution_complete", (details: ExitCodeDetails) => {
+				this.shellExecutionCompleteCount++
+				if (this.shellExecutionCompleteCount > 1) {
+					console.warn(
+						`[TerminalProcess] shell_execution_complete fired ${this.shellExecutionCompleteCount} times for command: ${command}`,
+					)
+				}
+				resolve(details)
+			})
 		})
 
 		// Execute command