diff --git a/packages/coding-agent/CHANGELOG.md b/packages/coding-agent/CHANGELOG.md
index 7d9fe089f..413020cbe 100644
--- a/packages/coding-agent/CHANGELOG.md
+++ b/packages/coding-agent/CHANGELOG.md
@@ -15,6 +15,7 @@
 
 ### Fixed
 
+- Fixed `Shift+Enter` queueing a follow-up instead of inserting a newline in Apple Terminal setups that send `ESC` + Return. pi now checks the local Shift key state for that sequence, as it already did for plain Return; `Alt+Enter` without Shift still queues a follow-up ([#11559](https://github.com/earendil-works/pi/issues/11559))
 - Fixed the working status (OSC 7501) disappearing in Rex and iTerm2 during runs in regular TUI mode. Rendered messages wrote OSC 133 prompt markers to the terminal, which the terminal treats as a new shell prompt; regular mode no longer writes them ([#11519](https://github.com/earendil-works/pi/issues/11519))
 - Fixed compaction, branch summaries, and bug-report summaries in SDK sessions passing the stored OAuth token back to the model runtime as an explicit API key. Provider auth that treats explicit keys differently from stored OAuth now sees the OAuth login, as normal prompts do ([#11520](https://github.com/earendil-works/pi/issues/11520))
 - Fixed a redundant system prompt update (tools, rules) when an extension set the same active tools in a different order, for example a reversed `pi.setActiveTools()` list. Tools that stay active now keep their order and newly activated tools are appended ([#11495](https://github.com/earendil-works/pi/issues/11495))
diff --git a/packages/coding-agent/docs/terminal-setup.md b/packages/coding-agent/docs/terminal-setup.md
index a3c67af07..ab8e1dc0e 100644
--- a/packages/coding-agent/docs/terminal-setup.md
+++ b/packages/coding-agent/docs/terminal-setup.md
@@ -40,7 +40,7 @@ This is an iTerm2-wide setting and can also change native trackpad scrolling. Th
 
 ## Apple Terminal
 
-Pi enables enhanced key reporting when available. If Terminal.app still sends plain Return for `Shift+Enter`, Pi uses a local macOS modifier fallback and treats it as `Shift+Enter`.
+Pi enables enhanced key reporting when available. If Terminal.app still sends plain Return or `ESC` + Return for `Shift+Enter`, Pi uses a local macOS modifier fallback and treats it as `Shift+Enter`. `ESC` + Return without Shift held remains `Alt+Enter`.
 
 The fallback works only when Pi runs on the same Mac as Terminal.app. It cannot inspect the local modifier state when Pi runs on another machine over SSH.
 
@@ -170,6 +170,8 @@ Windows Terminal uses Pi's Windows and WSL shortcut defaults. See [Keybindings](
 
 ### Forward Shift+Enter
 
+When Pi runs natively on Windows, it checks the local Shift key state and treats plain Return or `ESC` + Return as `Shift+Enter` while Shift is held. This fallback does not work in WSL or over SSH. If `Shift+Enter` still submits, forward it explicitly.
+
 Open Windows Terminal's `settings.json` with `Ctrl+Shift+,` or **Settings > Open JSON file**. Add this object to its `actions` array:
 
 ```json
diff --git a/packages/tui/CHANGELOG.md b/packages/tui/CHANGELOG.md
index af6656e4d..d008a185f 100644
--- a/packages/tui/CHANGELOG.md
+++ b/packages/tui/CHANGELOG.md
@@ -10,6 +10,7 @@
 
 ### Fixed
 
+- Fixed `Shift+Enter` queueing a follow-up in Apple Terminal setups that send `ESC` + Return. When local native Shift detection is available (Apple Terminal, native Windows), `ProcessTerminal` now treats `ESC` + Return with Shift held as `Shift+Enter`; without Shift it remains `Alt+Enter` ([#11559](https://github.com/earendil-works/pi/issues/11559))
 - Fixed regular-mode `TUI` writing OSC 133 prompt markers from rendered lines to the terminal. Terminals treat `133;A` as a new shell prompt and drop the OSC 7501 program status, so the working indicator disappeared during runs. Fullscreen still uses the markers for prompt navigation and already stripped them ([#11519](https://github.com/earendil-works/pi/issues/11519))
 - Fixed fullscreen double-click selection splitting paths and tokens at `~`, `.`, `\`, and `+`. Word characters now match iTerm2's defaults ([#10980](https://github.com/earendil-works/pi/issues/10980))
 - Fixed `fuzzyMatch()` ranking a query scattered over an earlier part of the text above a contiguous match later in it. It now also scores each contiguous occurrence of the query and keeps the best alignment ([#11220](https://github.com/earendil-works/pi/issues/11220), [#11296](https://github.com/earendil-works/pi/pull/11296))
diff --git a/packages/tui/src/terminal.ts b/packages/tui/src/terminal.ts
index 8e56022e9..55dab58d5 100644
--- a/packages/tui/src/terminal.ts
+++ b/packages/tui/src/terminal.ts
@@ -60,12 +60,19 @@ export function refreshTerminalDimensions(): void {
 	}
 }
 
+// Some Apple Terminal setups send ESC+CR (Alt+Enter) for Shift+Enter (#11559).
+function isNativeShiftEnterCandidate(data: string): boolean {
+	return data === "\r" || data === "\x1b\r";
+}
+
 export function normalizeNativeShiftEnterInput(
 	data: string,
 	shouldDetectNativeShiftEnter: boolean,
 	isShiftPressed: boolean,
 ): string {
-	if (shouldDetectNativeShiftEnter && data === "\r" && isShiftPressed) return NATIVE_SHIFT_ENTER_SEQUENCE;
+	if (shouldDetectNativeShiftEnter && isNativeShiftEnterCandidate(data) && isShiftPressed) {
+		return NATIVE_SHIFT_ENTER_SEQUENCE;
+	}
 	return data;
 }
 
@@ -397,7 +404,7 @@ export class ProcessTerminal implements Terminal {
 	private forwardInputSequence(sequence: string): void {
 		if (!this.inputHandler) return;
 		const shouldDetectNativeShiftEnter =
-			sequence === "\r" && (isAppleTerminalSession() || process.platform === "win32");
+			isNativeShiftEnterCandidate(sequence) && (isAppleTerminalSession() || process.platform === "win32");
 		const input = normalizeNativeShiftEnterInput(
 			sequence,
 			shouldDetectNativeShiftEnter,
diff --git a/packages/tui/test/terminal.test.ts b/packages/tui/test/terminal.test.ts
index de3bc40eb..8f8ce0e4f 100644
--- a/packages/tui/test/terminal.test.ts
+++ b/packages/tui/test/terminal.test.ts
@@ -36,6 +36,13 @@ describe("normalizeNativeShiftEnterInput", () => {
 		assert.equal(normalizeNativeShiftEnterInput("\r", true, true), "\x1b[13;2u");
 	});
 
+	it("rewrites ESC+CR to CSI-u Shift+Enter when Shift is pressed", () => {
+		// #11559
+		assert.equal(normalizeNativeShiftEnterInput("\x1b\r", true, true), "\x1b[13;2u");
+		assert.equal(normalizeNativeShiftEnterInput("\x1b\r", true, false), "\x1b\r");
+		assert.equal(normalizeNativeShiftEnterInput("\x1b\r", false, true), "\x1b\r");
+	});
+
 	it("leaves Return unchanged when native Shift detection is disabled", () => {
 		assert.equal(normalizeNativeShiftEnterInput("\r", false, true), "\r");
 	});