diff --git a/Cargo.lock b/Cargo.lock
index 920c9970e..04dc8a951 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -306,6 +306,7 @@ dependencies = [
  "regex",
  "serde",
  "serde_json",
+ "termimad",
  "toml",
 ]
 
@@ -801,7 +802,7 @@ dependencies = [
  "encode_unicode",
  "libc",
  "once_cell",
- "unicode-width",
+ "unicode-width 0.2.2",
  "windows-sys 0.59.0",
 ]
 
@@ -814,7 +815,7 @@ dependencies = [
  "encode_unicode",
  "libc",
  "once_cell",
- "unicode-width",
+ "unicode-width 0.2.2",
  "windows-sys 0.61.2",
 ]
 
@@ -824,6 +825,24 @@ version = "0.9.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "c2459377285ad874054d797f3ccebf984978aa39129f6eafde5cdc8315b612f8"
 
+[[package]]
+name = "convert_case"
+version = "0.10.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "633458d4ef8c78b72454de2d54fd6ab2e60f9e02be22f3c6104cdc8a4e0fceb9"
+dependencies = [
+ "unicode-segmentation",
+]
+
+[[package]]
+name = "coolor"
+version = "1.1.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "980c2afde4af43d6a05c5be738f9eae595cff86dce1f38f88b95058a98c027f3"
+dependencies = [
+ "crossterm",
+]
+
 [[package]]
 name = "core-foundation"
 version = "0.9.4"
@@ -874,6 +893,45 @@ version = "2.4.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "19d374276b40fb8bbdee95aef7c7fa6b5316ec764510eb64b8dd0e2ed0d7e7f5"
 
+[[package]]
+name = "crokey"
+version = "1.4.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "04a63daf06a168535c74ab97cdba3ed4fa5d4f32cb36e437dcceb83d66854b7c"
+dependencies = [
+ "crokey-proc_macros",
+ "crossterm",
+ "once_cell",
+ "serde",
+ "strict",
+]
+
+[[package]]
+name = "crokey-proc_macros"
+version = "1.4.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "847f11a14855fc490bd5d059821895c53e77eeb3c2b73ee3dded7ce77c93b231"
+dependencies = [
+ "crossterm",
+ "proc-macro2",
+ "quote",
+ "strict",
+ "syn",
+]
+
+[[package]]
+name = "crossbeam"
+version = "0.8.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1137cd7e7fc0fb5d3c5a8678be38ec56e819125d8d7907411fe24ccb943faca8"
+dependencies = [
+ "crossbeam-channel",
+ "crossbeam-deque",
+ "crossbeam-epoch",
+ "crossbeam-queue",
+ "crossbeam-utils",
+]
+
 [[package]]
 name = "crossbeam-channel"
 version = "0.5.15"
@@ -883,6 +941,25 @@ dependencies = [
  "crossbeam-utils",
 ]
 
+[[package]]
+name = "crossbeam-deque"
+version = "0.8.6"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "9dd111b7b7f7d55b72c0a6ae361660ee5853c9af73f70c3c2ef6858b950e2e51"
+dependencies = [
+ "crossbeam-epoch",
+ "crossbeam-utils",
+]
+
+[[package]]
+name = "crossbeam-epoch"
+version = "0.9.18"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "5b82ac4a3c2ca9c3460964f020e1402edd5753411d7737aa39c3714ad1b5420e"
+dependencies = [
+ "crossbeam-utils",
+]
+
 [[package]]
 name = "crossbeam-queue"
 version = "0.3.12"
@@ -898,6 +975,33 @@ version = "0.8.21"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d0a5c400df2834b80a4c3327b3aad3a4c4cd4de0629063962b03235697506a28"
 
+[[package]]
+name = "crossterm"
+version = "0.29.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d8b9f2e4c67f833b660cdb0a3523065869fb35570177239812ed4c905aeff87b"
+dependencies = [
+ "bitflags",
+ "crossterm_winapi",
+ "derive_more",
+ "document-features",
+ "mio",
+ "parking_lot",
+ "rustix",
+ "signal-hook",
+ "signal-hook-mio",
+ "winapi",
+]
+
+[[package]]
+name = "crossterm_winapi"
+version = "0.9.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "acdd7c62a3665c7f6830a51635d9ac9b23ed385797f70a83bb8bafe9c572ab2b"
+dependencies = [
+ "winapi",
+]
+
 [[package]]
 name = "crypto-common"
 version = "0.1.7"
@@ -1064,6 +1168,28 @@ dependencies = [
  "serde_core",
 ]
 
+[[package]]
+name = "derive_more"
+version = "2.1.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d751e9e49156b02b44f9c1815bcb94b984cdcc4396ecc32521c739452808b134"
+dependencies = [
+ "derive_more-impl",
+]
+
+[[package]]
+name = "derive_more-impl"
+version = "2.1.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "799a97264921d8623a957f6c3b9011f3b5492f557bbb7a5a19b7fa6d06ba8dcb"
+dependencies = [
+ "convert_case",
+ "proc-macro2",
+ "quote",
+ "rustc_version",
+ "syn",
+]
+
 [[package]]
 name = "dialoguer"
 version = "0.12.0"
@@ -1112,7 +1238,7 @@ dependencies = [
  "libc",
  "option-ext",
  "redox_users",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.2",
 ]
 
 [[package]]
@@ -1126,6 +1252,15 @@ dependencies = [
  "syn",
 ]
 
+[[package]]
+name = "document-features"
+version = "0.2.12"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d4b8a88685455ed29a21542a33abd9cb6510b6b129abadabdcef0f4c55bc8f61"
+dependencies = [
+ "litrs",
+]
+
 [[package]]
 name = "dotenvy"
 version = "0.15.7"
@@ -1190,7 +1325,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "39cab71617ae0d63f51a36d69f866391735b51691dbda63cf6f96d042b63efeb"
 dependencies = [
  "libc",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.2",
 ]
 
 [[package]]
@@ -2034,7 +2169,7 @@ checksum = "25470f23803092da7d239834776d653104d551bc4d7eacaf31e6837854b8e9eb"
 dependencies = [
  "console 0.16.2",
  "portable-atomic",
- "unicode-width",
+ "unicode-width 0.2.2",
  "unit-prefix",
  "web-time",
 ]
@@ -2155,6 +2290,29 @@ dependencies = [
  "simple_asn1",
 ]
 
+[[package]]
+name = "lazy-regex"
+version = "3.6.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6bae91019476d3ec7147de9aa291cadb6d870abf2f3015d2da73a90325ac1496"
+dependencies = [
+ "lazy-regex-proc_macros",
+ "once_cell",
+ "regex",
+]
+
+[[package]]
+name = "lazy-regex-proc_macros"
+version = "3.6.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4de9c1e1439d8b7b3061b2d209809f447ca33241733d9a3c01eabf2dc8d94358"
+dependencies = [
+ "proc-macro2",
+ "quote",
+ "regex",
+ "syn",
+]
+
 [[package]]
 name = "lazy_static"
 version = "1.5.0"
@@ -2256,6 +2414,12 @@ version = "0.8.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "6373607a59f0be73a39b6fe456b8192fcc3585f602af20751600e974dd455e77"
 
+[[package]]
+name = "litrs"
+version = "1.0.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "11d3d7f243d5c5a8b9bb5d6dd2b1602c0cb0b9db1621bafc7ed66e35ff9fe092"
+
 [[package]]
 name = "lock_api"
 version = "0.4.14"
@@ -2364,6 +2528,15 @@ dependencies = [
  "unicase",
 ]
 
+[[package]]
+name = "minimad"
+version = "0.14.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "df8b688969b16915f3ecadc7829d5b7779dee4977e503f767f34136803d5c06f"
+dependencies = [
+ "once_cell",
+]
+
 [[package]]
 name = "minimal-lexical"
 version = "0.2.1"
@@ -2377,6 +2550,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "a69bcab0ad47271a0234d9422b131806bf3968021e5dc9328caf2d4cd58557fc"
 dependencies = [
  "libc",
+ "log",
  "wasi",
  "windows-sys 0.61.2",
 ]
@@ -2438,7 +2612,7 @@ version = "0.50.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "7957b9740744892f114936ab4a57b3f487491bbeafaf8083688b16841a4240e5"
 dependencies = [
- "windows-sys 0.59.0",
+ "windows-sys 0.61.2",
 ]
 
 [[package]]
@@ -2983,7 +3157,7 @@ dependencies = [
  "once_cell",
  "socket2",
  "tracing",
- "windows-sys 0.59.0",
+ "windows-sys 0.60.2",
 ]
 
 [[package]]
@@ -3344,6 +3518,15 @@ version = "2.1.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "357703d41365b4b27c590e3ed91eabb1b663f07c4c084095e60cbed4362dff0d"
 
+[[package]]
+name = "rustc_version"
+version = "0.4.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "cfcb3a22ef46e85b45de6ee7e79d063319ebb6594faafcf1c225ea92ab6e9b92"
+dependencies = [
+ "semver",
+]
+
 [[package]]
 name = "rusticata-macros"
 version = "4.1.0"
@@ -3363,7 +3546,7 @@ dependencies = [
  "errno",
  "libc",
  "linux-raw-sys",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.2",
 ]
 
 [[package]]
@@ -3431,7 +3614,7 @@ dependencies = [
  "security-framework",
  "security-framework-sys",
  "webpki-root-certs",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.2",
 ]
 
 [[package]]
@@ -3779,6 +3962,27 @@ version = "1.3.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "0fda2ff0d084019ba4d7c6f371c95d8fd75ce3524c3cb8fb653a3023f6323e64"
 
+[[package]]
+name = "signal-hook"
+version = "0.3.18"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "d881a16cf4426aa584979d30bd82cb33429027e42122b169753d6ef1085ed6e2"
+dependencies = [
+ "libc",
+ "signal-hook-registry",
+]
+
+[[package]]
+name = "signal-hook-mio"
+version = "0.2.5"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b75a19a7a740b25bc7944bdee6172368f988763b744e3d4dfe753f6b4ece40cc"
+dependencies = [
+ "libc",
+ "mio",
+ "signal-hook",
+]
+
 [[package]]
 name = "signal-hook-registry"
 version = "1.4.8"
@@ -4078,6 +4282,12 @@ version = "1.2.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "6ce2be8dc25455e1f91df71bfa12ad37d7af1092ae736f3a6cd0e37bc7810596"
 
+[[package]]
+name = "strict"
+version = "0.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f42444fea5b87a39db4218d9422087e66a85d0e7a0963a439b07bcdf91804006"
+
 [[package]]
 name = "string_cache"
 version = "0.8.9"
@@ -4190,7 +4400,7 @@ version = "1.4.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "fce91f2f0ec87dff7e6bcbbeb267439aa1188703003c6055193c821487400432"
 dependencies = [
- "unicode-width",
+ "unicode-width 0.2.2",
 ]
 
 [[package]]
@@ -4214,7 +4424,7 @@ dependencies = [
  "getrandom 0.4.1",
  "once_cell",
  "rustix",
- "windows-sys 0.59.0",
+ "windows-sys 0.61.2",
 ]
 
 [[package]]
@@ -4228,6 +4438,22 @@ dependencies = [
  "utf-8",
 ]
 
+[[package]]
+name = "termimad"
+version = "0.34.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "889a9370996b74cf46016ce35b96c248a9ac36d69aab1d112b3e09bc33affa49"
+dependencies = [
+ "coolor",
+ "crokey",
+ "crossbeam",
+ "lazy-regex",
+ "minimad",
+ "serde",
+ "thiserror 2.0.18",
+ "unicode-width 0.1.14",
+]
+
 [[package]]
 name = "termtree"
 version = "0.5.1"
@@ -4698,6 +4924,18 @@ version = "0.1.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "7df058c713841ad818f1dc5d3fd88063241cc61f49f5fbea4b951e8cf5a8d71d"
 
+[[package]]
+name = "unicode-segmentation"
+version = "1.12.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f6ccf251212114b54433ec949fd6a7841275f9ada20dddd2f29e9ceea4501493"
+
+[[package]]
+name = "unicode-width"
+version = "0.1.14"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7dd6e30e90baa6f72411720665d41d89b9a3d039dc45b8faea1ddd07f617f6af"
+
 [[package]]
 name = "unicode-width"
 version = "0.2.2"
@@ -5064,7 +5302,7 @@ version = "0.1.11"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "c2a7b1c03c876122aa43f3020e6c3c3ee5c05081c9a00739faf7503aeba10d22"
 dependencies = [
- "windows-sys 0.48.0",
+ "windows-sys 0.61.2",
 ]
 
 [[package]]
diff --git a/Cargo.toml b/Cargo.toml
index f7f81d730..df6280596 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -43,6 +43,7 @@ aho-corasick = "1"
 sqlx = { version = "0.8", features = ["runtime-tokio", "sqlite", "chrono"] }
 dirs = "6"
 indicatif = "0.18"
+termimad = "0.34"
 toml = "0.8"
 jsonwebtoken = { version = "10", features = ["aws_lc_rs"] }
 daytona-sdk = { git = "https://github.com/brynary/daytona-sdk-rust", package = "daytona-sdk" }
diff --git a/crates/arc-agent/src/cli.rs b/crates/arc-agent/src/cli.rs
index 5a75235e2..27c445f2b 100644
--- a/crates/arc-agent/src/cli.rs
+++ b/crates/arc-agent/src/cli.rs
@@ -217,11 +217,11 @@ fn format_tool_args(args: &serde_json::Value, cwd: &str) -> String {
         .join(", ")
 }
 
-fn print_output(session: &Session) {
+fn print_output(session: &Session, styles: &Styles) {
     for turn in session.history().turns() {
         if let Turn::Assistant { content, .. } = turn {
             if !content.is_empty() {
-                println!("{content}");
+                println!("{}", styles.render_markdown(content));
             }
         }
     }
@@ -575,7 +575,7 @@ pub async fn run_with_args(args: AgentArgs) -> anyhow::Result<()> {
 
     if matches!(output_format, OutputFormat::Text) {
         // Print assistant text to stdout
-        print_output(&session);
+        print_output(&session, styles);
 
         // Print completion summary to stderr
         print_summary(&session, styles);
diff --git a/crates/arc-util/Cargo.toml b/crates/arc-util/Cargo.toml
index 37ff75145..b533056d8 100644
--- a/crates/arc-util/Cargo.toml
+++ b/crates/arc-util/Cargo.toml
@@ -11,6 +11,7 @@ doctest = false
 [dependencies]
 console.workspace = true
 regex.workspace = true
+termimad.workspace = true
 aho-corasick.workspace = true
 serde_json.workspace = true
 
diff --git a/crates/arc-util/src/terminal.rs b/crates/arc-util/src/terminal.rs
index 55ada8045..449690a09 100644
--- a/crates/arc-util/src/terminal.rs
+++ b/crates/arc-util/src/terminal.rs
@@ -3,6 +3,7 @@ use console::Style;
 /// Pre-built [`console::Style`] instances for styled terminal output.
 /// Each style is forced on/off based on the `use_color` flag passed to [`Styles::new`].
 pub struct Styles {
+    pub use_color: bool,
     pub bold: Style,
     pub dim: Style,
     pub cyan: Style,
@@ -21,6 +22,7 @@ impl Styles {
     #[must_use]
     pub fn new(use_color: bool) -> Self {
         Self {
+            use_color,
             bold: Style::new().bold().force_styling(use_color),
             dim: Style::new().dim().force_styling(use_color),
             cyan: Style::new().cyan().force_styling(use_color),
@@ -36,6 +38,16 @@ impl Styles {
         }
     }
 
+    /// Render Markdown text with terminal formatting (bold, tables, headers).
+    /// Returns plain text when color is disabled.
+    #[must_use]
+    pub fn render_markdown(&self, text: &str) -> String {
+        if !self.use_color {
+            return text.to_string();
+        }
+        termimad::term_text(text).to_string()
+    }
+
     /// Create styles based on whether stderr is a TTY.
     /// Respects `NO_COLOR` environment variable.
     #[must_use]
diff --git a/crates/arc-workflows/src/cli/run.rs b/crates/arc-workflows/src/cli/run.rs
index 8ff773b8b..f1f33bb64 100644
--- a/crates/arc-workflows/src/cli/run.rs
+++ b/crates/arc-workflows/src/cli/run.rs
@@ -1096,7 +1096,7 @@ fn print_final_output(logs_dir: &std::path::Path, styles: &Styles) {
             let text = response.trim();
             if !text.is_empty() {
                 eprintln!("\n{}", styles.bold.apply_to("=== Output ==="));
-                eprintln!("{text}");
+                eprintln!("{}", styles.render_markdown(text));
             }
             return;
         }